Is Gold Star required to provide a report on the use of the Brand Building Fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3.6 A report of the use and application of the Brand Building Fund shall be prepared annually by the COMPANY or its designee and a copy will be provided to FRANCHISEE upon written request of FRANCHISEE therefor.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star or its designee must prepare an annual report detailing the use and application of the Brand Building Fund. A franchisee can obtain a copy of this report by submitting a written request to Gold Star.
This requirement ensures transparency in how the Brand Building Fund is managed and spent. Franchisees contribute to this fund, so they have a vested interest in understanding how their contributions are being used to support the Gold Star brand through advertising, marketing, and promotional activities.
The report offers franchisees a way to assess whether the fund is being used effectively to promote the brand and support their businesses. By requesting and reviewing this report, franchisees can hold Gold Star accountable for the proper management of the Brand Building Fund.