Who has sole discretion to determine the media used in the Gold Star Brand Building Fund?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Gold Star has designated GSCAA to administer the Brand Building Fund and the Brand Building Fees which are currently used for the Brand Building Fund. Gold Star and GSCAA have sole discretion to determine, approve or disapprove the creative concepts, materials and media used in the Brand Building Fund and the placement, type, scope and allocation of Brand Building Fund advertising and activities.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–36)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star and GSCAA have sole discretion in determining the media used for the Brand Building Fund. This includes the power to approve or disapprove creative concepts and materials, as well as the placement, type, scope, and allocation of advertising and activities. GSCAA is designated to administer the Brand Building Fund, which uses fees collected from franchisees.
This means that franchisees do not have direct control over how the Brand Building Fund is spent or what advertising media are used. While a Franchisee Advisory Council advises GSCAA on advertising policies, Gold Star ultimately has the final say. The media used can include print, radio, television, billboards, newspaper, and digital channels like email and internet advertising.
Gold Star is not obligated to spend any amount on advertising in a 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. This gives Gold Star significant flexibility in how they allocate advertising resources, but it also means that franchisees may not see a direct return on their Brand Building Fee contributions in their local market.
Franchisees are allowed to develop their own advertising materials, but these must be approved in writing by Gold Star. This ensures that all advertising aligns with the brand's overall marketing strategy, but it also adds an extra step for franchisees who want to implement their own local marketing initiatives.