Are the financial statements of Gold Star audited?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: Financial Statements]
Item 21
Financial Statements
Attached to this disclosure document as Exhibit F are the audited financial statements of Gold Star for the years ended December 31, 2022, December 31, 2023 and December 31, 2024, which include statements of operations, stockholder equity and cash flows for each of the 3 years in the period ended December 31, 2024.
[Item 23: Receipts]
INDEPENDENT AUDITOR'S REPORT
Board of Directors and Stockholders Gold Star Chili, Inc. Cincinnati, Ohio
Opinion
We have audited the accompanying consolidated financial statements of Gold Star Chili, Inc. (an 'S' Corporation), its subsidiary, TCWW, LLC, and its consolidated entity, GSC Properties, LLC, which comprise the consolidated balance sheets as of December 31, 2024, 2023 and 2022 and the related consolidated statements of income and comprehensive income, stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Gold Star Chili, Inc., its subsidiary, TCWW, LLC, and its consolidated entity, GSC Properties, LLC, as of December 31, 2024, 2023, and 2022, and the results of their operations and their cash flows for the years the ended in accordance with accounting principles generally accepted in the United States of America.
[Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training]
The Brand Building Fund is not audited; however, an unaudited report of the use and application of the Brand Building Fund will be prepared annually by Gold Star or its designee and a copy of the report will be provided to any Franchisee upon written request.
Source: Item 21 — Financial Statements (FDD page 52)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the financial statements are indeed audited. Item 21 explicitly states that the audited financial statements of Gold Star for the years ended December 31, 2022, December 31, 2023, and December 31, 2024, are attached as Exhibit F. These statements include operations, stockholder equity, and cash flow details for each of the three years, providing a comprehensive view of the company's financial performance.
Furthermore, the Independent Auditor's Report included in Item 23 reinforces this. It confirms that Gold Star Chili, Inc.'s consolidated financial statements have been audited by an independent auditor. The auditor's opinion indicates that the financial statements present fairly the financial position of Gold Star Chili, Inc., its subsidiary TCWW, LLC, and its consolidated entity, GSC Properties, LLC, as of December 31, 2024, 2023, and 2022. This opinion is based on audits conducted in accordance with generally accepted auditing standards in the United States of America.
For a prospective franchisee, this is a positive sign. Audited financial statements provide a higher level of confidence in the accuracy and reliability of the financial information presented. This means that an independent third party has reviewed Gold Star's financial records and has issued an opinion on whether they are fairly presented in accordance with accounting principles. This level of scrutiny can help potential franchisees make more informed decisions about investing in a Gold Star franchise.
It is worth noting that the Brand Building Fund is not audited, but an unaudited report of its use and application is prepared annually and available to franchisees upon written request. While the core financial statements are audited, franchisees should be aware that other financial aspects, like the Brand Building Fund, have a different level of financial oversight.