Who is the sole member of the Gold Star Chili Advertising Association (GSCAA)?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Special Purpose Outlet is 4% of Gross Sales.
Note 3: Gold Star Currently has designated Gold Star Chili Advertising Association, an Ohio nonprofit corporation ("GSCAA"), to oversee the franchisee Brand Building fund (the "Brand Building Fund"). Gold Star is the sole member of GSCAA, and a majority of GSCAA's current board of trustees are officers, directors, employees or shareholders of Gold Star. Brand Building Fees are imposed by Gold Star under the Franchise Agreement. The Brand Building Fund does not itself impose fees. All Brand Building Fees are nonrefundable; however, when a Franchisee opening a new Restaurant reviews and approves the New Restaurant Opening Marketing Plan, it is the current practice for those expenses (currently, at least $15,000) to be funded by GSCAA and the Franchisee to reimburse their portion in the amount of $10,000, the remainder funded by GSCAA. In addition, it is currently the practice for Gold Star to spend $10,000 of Brand Building Fees on advertising and support to a Franchisee who "re-opens" a Restaurant that it has spent more than $50,000 remodeling and invoice the Franchisee for their contribution in the amount of $5,000 for grand re-opening marketing and promotion. Neither Gold Star nor GSCAA is obligated to continue these practices. At the option of Gold Star, you must enter into and maintain a debit authorization agreement authorizing Gold Star to cause your bank account to be debited for charges, including Continuing Franchise Fees,
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, Gold Star is the sole member of the Gold Star Chili Advertising Association (GSCAA). The GSCAA is an Ohio nonprofit corporation that oversees the franchisee Brand Building Fund. A majority of GSCAA's current board of trustees are officers, directors, employees, or shareholders of Gold Star.
The Brand Building Fees are imposed by Gold Star under the Franchise Agreement, and the Brand Building Fund itself does not impose any fees. These Brand Building Fees are nonrefundable. However, when a franchisee opening a new restaurant reviews and approves the New Restaurant Opening Marketing Plan, the current practice is for those expenses (at least $15,000) to be funded by GSCAA, with the franchisee reimbursing $10,000 and GSCAA funding the remainder.
Additionally, Gold Star's current practice is to spend $10,000 of Brand Building Fees on advertising and support for a franchisee who "re-opens" a Restaurant after spending more than $50,000 remodeling, and then invoice the franchisee $5,000 for grand re-opening marketing and promotion. It is important to note that neither Gold Star nor GSCAA is obligated to continue these practices. Gold Star has the option to require franchisees to enter into and maintain a debit authorization agreement, allowing Gold Star to debit their bank account for charges, including Continuing Franchise Fees and Brand Building Fees.