Under what condition can the Brand Building Fund be terminated for Gold Star franchisees?

According to Gold Star's 2025 Franchise Disclosure Document, the Brand Building Fund is intended to be of perpetual duration; however, Gold Star has the right to terminate or suspend its operation at any time. The critical condition for termination is that the Brand Building Fund cannot be terminated until all monies within the fund have been fully expended according to Section 9.3.5 of the FDD.

Section 9.3.5 states that all contributions to, and earnings of, the Brand Building Fund should be spent during the taxable year they are received. This means Gold Star must ensure all funds are used for their intended purpose, such as advertising, promotional activities, and related costs, before the fund can be terminated.

If the Brand Building Fund is suspended or terminated, or if the required Brand Building Fee percentage is less than seven percent, Gold Star has the option to increase the Local Marketing Expenditure up to seven percent of the franchisee's Gross Sales. However, the combined total of the Local Marketing Expenditure and any required Brand Building Fees cannot exceed seven percent of the franchisee's Gross Sales in any calendar year. This ensures that franchisees' overall marketing expenditure remains capped even if the fund's structure changes.