What amount of rents did Gold Star collect in 2023 from related parties?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
aggregate debit balance of $308,433 remaining at December 31, 2024 in accumulated other comprehensive income. All forecasted transactions currently being hedged are expected to occur in July 2028.
NOTE 21 – VARIABLE INTEREST ENTITY
U.S. GAAP addresses the consolidation of business enterprises to which the usual condition of consolidation, ownership of a majority interest, does not apply. U.S. GAAP focuses on controlling financial interests that may be achieved through arrangements that do not involve voting interests. They conclude that, in the absence of clear control through voting interests, a company's exposure (variable interest) to the economic risks and potential rewards from the assets and activities of the variable interest entities (VIE's) is the best evidence of control. If an enterprise holds a majority of the variable interests of an entity, it would be considered the primary beneficiary.
Some of the Company's stockholders hold a 100% interest in GSC Properties, LLC, a rental real estate limited liability
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, some of Gold Star's stockholders hold a 100% interest in GSC Properties, LLC, which is a rental real estate limited liability company. Gold Star is the primary beneficiary of this entity and consolidates its financials. In 2023, GSC Properties, LLC had revenues of $2,158,459.
This means that Gold Star leases buildings from a company (GSC Properties, LLC) that is owned by some of its stockholders. Because Gold Star guarantees the debt of GSC Properties, LLC, it is required to consolidate the financial results of GSC Properties, LLC with its own.
For a prospective franchisee, this related party transaction is important to understand because it provides insight into the financial relationships between Gold Star and its owners. The revenues and expenses of GSC Properties, LLC are included in Gold Star's overall financial statements, which can impact the perceived profitability and financial health of the company. Franchisees should consider how these related party transactions might affect Gold Star's operations and financial stability.