Does the FDD include the Gold Star Chili, Inc. Consolidated Statements of Stockholders' Equity?

According to Gold Star's 2025 Franchise Disclosure Document, the document includes the Gold Star Chili, Inc. Consolidated Statements of Stockholders' Equity. This statement is part of the consolidated financial statements of Gold Star Chili, Inc., its subsidiary TCWW, LLC, and its consolidated entity, GSC Properties, LLC. These statements are audited by an independent auditor. The auditor's report expresses an opinion on the fairness of the presentation of the consolidated financial position of these entities as of December 31, 2024, 2023, and 2022.

The inclusion of these statements indicates that the FDD provides a detailed overview of the company's financial structure and equity. The consolidated statements include common stock, paid-in capital, retained earnings (deficit), and accumulated other comprehensive income (loss). For example, the table shows that as of the most recent reporting, Common Stock, No Par Value; 10,000 Shares Authorized, Issued and Outstanding was valued at 1,000. Paid-In Capital was 212,680. Retained (Deficit) Earnings was (537,818). Accumulated Other Comprehensive Income (Loss) was 1 94,930. Stockholders' (Deficit) Equity was (129,208).

Prospective franchisees should carefully review these statements to understand Gold Star's equity position, how it has changed over the past three years, and the relationship between the parent company and its related entities. Understanding these statements can help a franchisee assess the financial stability and overall health of the Gold Star franchise system. It is important to note that the financial statements for the year ended December 31, 2022, have been restated for the correction of material misstatements, as emphasized in the auditor's report. This restatement should prompt further inquiry to understand the nature and impact of these misstatements.