Does the financial data in Tables 1 and 2 for Gold Star include information 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 explicitly states that the data does not include figures from any company-owned Gold Star locations. This distinction is crucial for prospective franchisees as it provides a performance overview based solely on the operations of other franchisees, offering a more relevant benchmark for their potential business outcomes.
Table 1 details the financial performance of 47 Franchised Traditional Outlets, defined as non-company-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 a subset of these, the 40 Franchised G5 Outlets, which are Franchised Traditional Outlets that have implemented the current published design standards of facility modifications and menu. The annualized sales data for the Franchised G5 Outlets is a subset of and included in the annualized sales data for all Franchised Traditional Outlets.
For a potential Gold Star franchisee, this means the financial performance representations in Tables 1 and 2 reflect the experiences of fellow franchisees, not the potentially different dynamics of company-run stores. This distinction helps in evaluating the franchise opportunity based on comparable business models. Gold Star also clarifies that these reports are not audited, but substantiation of the data will be made available in writing upon reasonable request.