Does the financial data in Tables 1 and 2 of the Gold Star FDD include data from company-owned outlets?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTES REGARDING SALES DATA IN TABLES 1 AND 2
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- As used in Tables 1 and 2, "Gross Sales" refers to total revenue derived from the sale of goods or services less sales tax, discounts, allowances, and returns.
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- The financial data provided in Tables 1 and 2 was obtained from sales reports from our Franchisees. These reports are not audited or otherwise verified. Substantiation of the data used in preparing this information will be made available to you in writing upon reasonable request.
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- The financial data provided in Tables 1 and 2 relates to franchised outlets only and does not include data from any company-owned outlets.
Source: Item 19 — Financial Performance Representations (FDD pages 46–48)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the financial data presented in Tables 1 and 2 is derived exclusively from franchised outlets. Specifically, Note 3 in Item 19 states that the data does not include figures from any company-owned Gold Star locations. This distinction is important for prospective franchisees to understand the basis of the financial performance representations.
Table 1 details the financial performance of Franchised Traditional Outlets, which are defined as noncompany-owned stores that are either free-standing or located on the end cap of a strip center and have a drive-thru. Table 2 focuses on Franchised G5 Outlets, a subset of Franchised Traditional Outlets that have implemented Gold Star's current design standards for facility modifications and menu. The annualized sales data for G5 Outlets is included within the overall data for all Franchised Traditional Outlets.
For example, Table 1 shows that the average gross sales for the top 25% of Franchised Traditional Outlets was $1,592,551.41, while Table 2 indicates that the average gross sales for the top 25% of Franchised G5 Outlets was $1,653,854.35. These figures, along with the median gross sales and the range of sales, provide potential franchisees with insights into the financial performance of existing franchised locations. However, it is crucial to remember that these figures do not reflect the performance of company-owned stores, which may operate under different conditions or strategies.
Prospective franchisees should focus on the performance data from franchised locations as it more accurately reflects what they might expect to achieve as a franchisee. Understanding that the data excludes company-owned outlets allows for a more relevant assessment of the potential financial outcomes of a Gold Star franchise.