Who has the sole discretion to approve the advertising concepts for the Brand Building Fund for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.3 Brand Building Fund. FRANCHISEE shall participate in the COMPANY's marketing fund (the "Brand Building Fund") as the COMPANY shall direct. Subject to written instructions from the COMPANY, FRANCHISEE shall pay all or a portion of the Brand Building Fee directly to the Brand Building Fund. The Brand Building Fund is currently administered by the Gold Star Chili Advertising Association, an Ohio nonprofit corporation, of which the COMPANY is the only member.
- 9.3.1 The COMPANY, or its designee, shall oversee all Brand Building Fund advertising, with sole discretion to determine, approve or disapprove the creative concepts, materials and media used in such advertising, and the placement, type, scope and allocation of the Brand Building Fund advertising. FRANCHISEE agrees and acknowledges that the Brand Building Fund advertising is intended to maximize general public recognition and acceptance of the Marks, Proprietary Products and System and that the COMPANY and its designee undertake no obligation, in
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company or its designee has sole discretion to approve advertising concepts for the Brand Building Fund. Specifically, Gold Star, or its designee, has the authority to determine, approve, or disapprove the creative concepts, materials, and media used in advertising, as well as the placement, type, scope, and allocation of the Brand Building Fund advertising.
This means that as a Gold Star franchisee, you will not have control over the advertising content or strategy funded by the Brand Building Fund. The purpose of the Brand Building Fund is to maximize general public recognition and acceptance of Gold Star's trademarks, products, and overall system.
Gold Star does not guarantee that advertising expenditures will be equivalent or proportionate to a franchisee's contribution, or that any particular franchisee will benefit directly or pro rata from the advertising or promotion conducted under the Brand Building Fund. Franchisees are required to participate in the Brand Building Fund as directed by Gold Star.