With respect to which supplier are assignments currently required for a Gold Star franchise?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 5: You must assign to Gold Star or its designee all product and/or advertising rebates or allowances that are granted to you by certain suppliers, as directed by Gold Star. Currently assignments are required with respect to our soft drinks supplier, with whom Gold Star has negotiated a group purchase arrangement. Although not obligated to do so by the Franchise Agreement or any related agreement, Gold Star's current practice is to have the assigned Franchisee supplier payments made (and to have all of the rebate or allowance payments from those suppliers receivable by Gold Star for company-owned Restaurants made) to GSCAA for use in the Brand Building Fund. Gold Star reserves the right to change this practice at any time without notice to its franchisees.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to the 2025 Gold Star Franchise Disclosure Document, franchisees are currently required to assign product and advertising rebates or allowances to Gold Star from their soft drink supplier. This is due to a group purchasing arrangement that Gold Star has negotiated with this supplier.
These assignments mean that any rebates or allowances the franchisee would normally receive from the soft drink supplier are instead directed to Gold Star or its designee. Currently, Gold Star's practice is to have these payments, along with similar payments from company-owned restaurants, made to the Gold Star Chili Advertising Association (GSCAA) for use in the Brand Building Fund. This fund is used for marketing and advertising initiatives to benefit the Gold Star brand as a whole.
It's important to note that while Gold Star currently directs these funds to the GSCAA, they reserve the right to change this practice at any time without notice. This means that the franchisee may not always know exactly how these assigned funds are being used. Franchisees should also be aware that Gold Star can change the suppliers for which assignments are required.