What requirements must a Gold Star franchisee meet to be eligible for a grand opening rebate?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
s used in connection with the Store. FRANCHISEE
specifically acknowledges and agrees that the word "advertising" as used in this Agreement includes, but is not limited to, signs (including signs on motor vehicles), URLs, e-mail addresses, Internet listings, banners, advertisements, or other services or links on or with the Internet, World Wide Web, Internet service providers, electronic mail services, communication providers, search engines, and similar services.
- 9.2 Grand Opening; Assignment of Rebates; Local Advertising. In addition to FRANCHISEE's obligations under Section 9.3, below:
- 9.2.1 FRANCHISEE shall, within three (3) months following the opening of the Store, spend such amount as the COMPANY may require (at least $10,000) in advertising and promoting the grand opening of the Store in accordance with the COMPANY's grand opening procedures (upon request of the COMPANY, FRANCHISEE shall provide to the COMPANY paid invoices, receipts or other proof of grand opening expenditures acceptable to the COMPANY); and
- 9.2.2 FRANCHISEE shall also assign pursuant to separate written assignments or consents to the COMPANY or its designee, in form and substance satisfactory to the COMPANY, any and all product and/or advertising rebates or allowances granted by suppliers to FRANCHISEE in conjunction with the franchise and required to be assigned by the COMPANY;
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, a franchisee may be eligible for a grand opening rebate if they meet specific requirements. To be considered for a rebate, the franchisee must spend at least $10,000 on advertising and promoting the grand opening of their store within three months of opening. This spending must align with Gold Star's grand opening procedures.
To verify compliance, Gold Star may request paid invoices, receipts, or other proof of grand opening expenditures deemed acceptable by the company. Additionally, the franchisee must assign any product and/or advertising rebates or allowances granted by suppliers in conjunction with the franchise to Gold Star. These assignments must be in a written form satisfactory to Gold Star.
If the franchisee fulfills these requirements to Gold Star's satisfaction, Gold Star has the option to provide an additional contribution from the Brand Building Fund to support grand opening advertising. However, the FDD states that the grand opening rebate is at Gold Star's option, meaning that even if a franchisee meets all requirements, Gold Star is not obligated to pay the rebate.