Who has sole discretion to determine the placement of advertising for the Gold Star Brand Building Fund?

According to Gold Star's 2025 Franchise Disclosure Document, Gold Star and GSCAA have sole discretion in determining the placement of advertising. Specifically, Gold Star and GSCAA have the authority to determine, approve, or disapprove the creative concepts, materials, and media used in the Brand Building Fund. They also have sole discretion over the placement, type, scope, and allocation of Brand Building Fund advertising and activities.

This means that as a Gold Star franchisee, you will have limited control over how the Brand Building Fund is used for advertising. While a Franchisee Advisory Council advises GSCAA on advertising policies, Gold Star ultimately has the power to form, dissolve, or change the council, and the council's role is purely advisory without any decision-making authority.

Gold Star is not obligated to spend any amount on advertising in the area where a franchisee is located, nor are they obligated to ensure that any franchisee benefits directly or on a pro rata basis from the Brand Building Fund. Franchisees are required to participate in the Brand Building Fund and pay fees equal to up to 7% of weekly Gross Sales, so it is important to understand that the benefits from this fund are not guaranteed to be directly proportional to the fees paid or targeted to their specific location.

Franchisees can develop their own advertising materials, but these are subject to Gold Star's prior written approval. This ensures that all advertising aligns with the brand's standards and guidelines, but it also means that franchisees cannot independently market their restaurants without oversight from the franchisor.