Who has sole discretion to determine the materials used in the Gold Star Brand Building Fund?

According to the 2025 Gold Star Franchise Disclosure Document, Gold Star and GSCAA have sole discretion in determining the creative aspects of the Brand Building Fund. This includes the power to approve or disapprove the creative concepts, materials, and media utilized. They also have control over the placement, type, scope, and allocation of advertising and activities funded by the Brand Building Fund. GSCAA is Gold Star's designee to administer the Brand Building Fund.

This means that as a franchisee, you will have limited input regarding how the Brand Building Fund is used. While the Gold Star Chili Franchisee Advisory Council advises GSCAA on advertising policies, Gold Star ultimately has the final say. Franchisees are required to participate in the Brand Building Fund and pay fees equal to up to 7% of weekly Gross Sales, so understanding how these funds are managed is crucial.

Gold Star is not obligated to spend any amount on advertising in the franchisee's specific area or territory, nor are they required to ensure that any franchisee benefits directly or on a pro rata basis from the Brand Building Fund. While franchisees can develop their own advertising materials, they must obtain Gold Star's prior written approval, ensuring that all marketing efforts align with the brand's overall strategy.

For the tax year ending December 31, 2024, the Brand Building Fund allocated its resources as follows: 6% on the production of advertisements and other promotional materials, 40% for media placement, 6% for general and administrative expenses, and 47% for other expenses, including advertising agency fees, sponsorship expenses, public relations expenses, website and e-mail marketing initiatives, local advertising and miscellaneous expenses. This breakdown gives prospective franchisees insight into how the fund is typically used, though Gold Star retains the right to change these allocations.