What was the difference in continuing franchisee fees collected by Gold Star between 2022 and 2023?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisees. Certain Company officers and employees serve as trustees of the advertising entity. The Company acts as a conduit in collecting advertising contributions from franchisees and disbursing the funds to the advertising entity. No income or expense is reflected on the Company's consolidated financial statements from this pass-through function. The Co
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the continuing franchisee fees collected in 2022 were $157,959, while in 2023, they amounted to $560,341. This indicates a significant increase in continuing franchisee fees from 2022 to 2023. To calculate the difference, we subtract the 2022 amount from the 2023 amount.
The difference in continuing franchisee fees collected by Gold Star between 2022 and 2023 was $402,382 ($560,341 - $157,959). This substantial increase could be due to various factors, such as an increase in the number of franchisees, higher sales across the franchise system, or changes in the fee structure.
For a prospective Gold Star franchisee, this data highlights the potential for significant revenue generation through continuing franchisee fees. However, it's essential to understand the factors driving these changes and whether they are sustainable. A potential franchisee should inquire about the reasons for the increase and how Gold Star plans to maintain or further grow this revenue stream.