What was the net income for Gold Star in 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net Sales | $ | 23,132,556 | $ | - | $ | 2,972,196 | $ | - $ | 26,104,752 |
|---|---|---|---|---|---|---|---|---|---|
| Cost of Sales | _ | 8,296,902 | _ | 769,402 | 9,066,304 | ||||
| Gross Profit | 14,835,654 | - | 2,202,794 | - | 17,038,448 | ||||
| Selling, General and | 12.072.620 | 702 529 | 2 225 042 | (465.260) | 16 526 040 | ||||
| Administrative Expenses | - | 13,973,638 | - | 703,528 | 2,325,043 | - | (465,260) | 16,536,949 | |
| Income (Loss) From Operations | _ | 862,016 | _ | (703,528) | (122,249) | 465,260 | 501,499 | ||
| Other Income (Expenses) | |||||||||
| Rental Income | 1,242,372 | 2,157,301 | _ | (479,628) | 2,920,045 | ||||
| Rent Expense | (363,595) | - | - | - | (363,595) | ||||
| Franchise Fees | 16,725 | - | - | - | 16,725 | ||||
| Interest Income | 73,388 | - | - | (73,388) | - | ||||
| Other Income | 56,178 | 8,872 | 633 | - | 65,683 | ||||
| Interest Expense | (533,986) | (331,489) | - | 73,388 | (792,087) | ||||
| Loss From Investment in | |||||||||
| Limited Liability Company | (121,616) | - | - | 121,616 | - | ||||
| Insurance Proceeds | - | - | 150,000 | 150,000 | |||||
| Total Other Income (Expenses) | _ | 369,466 | 1,984,684 | 633 | (358,012) | 1,996,771 | |||
| Net Income (Loss) | 1,231,48 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the consolidated net income for the year ended December 31, 2024, was $2,498,270. This figure represents the combined net income (loss) of Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC, after eliminations. Specifically, Gold Star Chili, Inc. had a net income of $1,231,482, GSC Properties, LLC had a net income of $1,281,156, and TCWW, LLC had a net loss of $121,616. There was also an elimination of $107,248.
It is important to note that Gold Star Chili, Inc. operates as an 'S' Corporation, meaning that most tax liabilities and benefits pass directly to its stockholders. Similarly, GSC Properties, LLC is taxed as a partnership, with tax liabilities and benefits passing to its members. TCWW, LLC, is a non-taxpaying entity for Federal income tax purposes. This structure could have implications for how franchisees manage their own tax obligations related to the franchise.
Prospective franchisees should consider this net income figure in the context of Gold Star's overall financial health and performance. Reviewing several years of financial statements, if available, would provide a more comprehensive understanding of the company's profitability trends. Additionally, it would be prudent to investigate the nature of the eliminations and related party transactions to fully understand the consolidated financial results.