What was the acquisition of goodwill for Gold Star in the year ended December 31, 2023 (restated)?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
epresent collateral for obligations of GSC Properties, LLC.
NOTE 22 – BUSINESS COMBINATIONS
On August 1, 2022, TCWW, LLC entered into an agreement to acquire certain assets and assume certain liabilities of Block Restaurant Group, LLC, a related party. The acquisition was made for the purpose of acquiring personnel, their existing locations, as well as additional skills and knowledge.
In accordance with U.S. GAAP, the purchase price of the acquired assets has been allocated based on the fair value of all identifiable assets at the date of acquisition. The paid amounts exceed the fair value of the identifiable assets by $89,300. Therefore, this amount is included in goodwill on the consolidated balance sheets of the Company as of December 31, 2022.
The assets acquired
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the acquisition of goodwill for the year ended December 31, 2023 (restated) was $200,000. This goodwill was recorded on the company's consolidated balance sheets and is attributed to factors such as expected continued customer patronage, the brand's recognition, and long-term business relationships.
In August 2023, Gold Star Chili, Inc. and GSC Properties, LLC acquired property in Hillsboro, Ohio, along with certain assets of M.F. Daoud, Inc. The acquisition included the existing location, additional skills, intellectual property, and furniture, fixtures, and equipment. The purchase price was allocated based on the fair value of identifiable assets at the acquisition date, in accordance with U.S. GAAP.
Goodwill in accounting represents the intangible assets acquired in a business combination that are not separately identifiable. For a Gold Star franchisee, this indicates that the brand is actively investing in growth and acquisitions, which can strengthen the overall brand and potentially benefit individual franchise locations through increased brand recognition and customer loyalty. However, it's important to note that goodwill is subject to impairment testing, and its value can be adjusted if circumstances indicate that the carrying amount may not be recoverable.