Does Gold Star have the right to delegate its responsibilities and duties regarding the Brand Building Fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.5 Company's Assignment Right. The COMPANY shall have the right to delegate its responsibilities and duties under this Section 9 to any designee of its choosing; provided, however, that the right of final approval of all advertising shall be retained at all times 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, Gold Star has the right to delegate its responsibilities and duties related to the Brand Building Fund. However, Gold Star retains the right of final approval for all advertising. This means that while Gold Star can assign the day-to-day management of the Brand Building Fund to another party, it maintains control over the advertising strategies and materials used.
This delegation could involve outsourcing the administration of the fund, the creation of advertising content, or the management of marketing campaigns. While a franchisee may not have direct control over who manages the fund, Gold Star's retention of final approval ensures that the advertising aligns with the brand's overall vision.
For a prospective franchisee, this means that while Gold Star can delegate tasks, it cannot relinquish its responsibility for ensuring the Brand Building Fund is managed effectively and in accordance with the franchise agreement. The franchisee can expect that Gold Star will ultimately be accountable for the advertising and marketing efforts supported by the fund.