factual

What standards and requirements must Gold Star franchisee advertising conform to?

Gold_Star Franchise · 2025 FDD

Answer from 2025 FDD Document

otherwise associated with the Business, and including without limitation any revenues earned offpremises, such as delivery, catering events, food trucks, etc., without reserve or deduction for uncollected credit accounts. "Gross Sales" shall not include sales taxes that are separately stated and collected by FRANCHISEE or refunds, discounts or allowances that are made to customers, in good faith and consistent with the COMPANY's policies prescribed from time to time.

9. ADVERTISING.

9.1 Franchisee's Advertising; Approval by Company. All advertising by FRANCHISEE in any medium shall be conducted in a dignified manner, shall conform to such standards and requirements as the COMPANY may specify from time to time in the Manual or otherwise in writing, shall conform to all applicable laws and regulations relating to consumer advertising, shall be completely accurate and truthful, and shall give notice that the Store is independently owned and operated. FRANCHISEE shall participate in all promotions designated by the COMPANY for the market in which the Store is located and will be responsible for putting up in-store materials and the cost of Products being promoted. FRANCHISEE shall not enter into any agreement with any advertising agency without the prior written approval of the COMPANY, which may be withheld in the COMPANY's sole discretion. FRANCHISEE shall submit to the COMPANY (in accordance with Section 20 below), for the COMPANY's prior approval (except with respect to prices to be charged), samples of all advertising and promotional plans and materials, including signs, and all other materials displaying the Marks that FRANCHISEE desires to use and that have not been prepared or previously approved by the COMPANY. Unless FRANCHISEE receives a written objection from the COMPANY within fifteen (15) days after the effective date of FRANCHISEE's request, the COMPANY shall be deemed to have given the required approval. FRANCHISEE shall display the Marks in the manner prescribed by the COMPANY on all signs and all other advertising and promotional materials used in connection with the Store. FRANCHISEE

specifically acknowledges and agrees that the word "advertising" as used in this Agreement includes, but is not limited to, signs (including signs on motor vehicles), URLs, e-mail addresses, Internet listings, banners, advertisements, or other services or links on or with the Internet, World Wide Web, Internet service providers, electronic mail services, communication providers, search engines, and similar services.

  • 9.2 Grand Opening; Assignment of Rebates; Local Advertising. In addition to FRANCHISEE's obligations under Section 9.3, below:
    • 9.2.1 FRANCHISEE shall, within three (3) months following the opening of the Store, spend such amount as the COMPANY may require (at least $10,000) in advertising and promoting the grand opening of the Store in accordance with the COMPANY's grand opening procedures (upon request of the COMPANY, FRANCHISEE shall provide to the COMPANY paid invoices, receipts or other proof of grand opening expenditures acceptable to the COMPANY);

Source: Item 23 — Receipts (FDD pages 53–163)

What This Means (2025 FDD)

According to Gold Star's 2025 Franchise Disclosure Document, all advertising by franchisees must be conducted in a dignified manner and adhere to the standards and requirements specified by Gold Star in its manual or in writing. The advertising must comply with all applicable laws and regulations related to consumer advertising, be completely accurate and truthful, and include a notice that the store is independently owned and operated. Franchisees are required to participate in promotions designated by Gold Star for their market, including in-store materials, and bear the cost of the products being promoted.

Franchisees cannot enter into agreements with advertising agencies without Gold Star's prior written approval, which may be withheld at Gold Star's discretion. Franchisees must submit samples of all advertising and promotional plans and materials, including signs and materials displaying Gold Star's marks, for approval, excluding prices to be charged, unless the materials have been previously approved by Gold Star. Approval is considered granted if no written objection is received from Gold Star within fifteen days of the request.

The manner in which the marks are displayed on signs and advertising materials must adhere to Gold Star's specifications. The term "advertising" includes signs (even on vehicles), URLs, email addresses, internet listings, banners, advertisements, and other online services. Franchisees are also obligated to spend a minimum of $10,000 on advertising and promoting the grand opening of their store within three months of opening. Furthermore, franchisees must spend no less than one percent of their gross sales on a monthly basis for local media and advertising, reporting these expenditures to Gold Star upon request.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.