What was the Net Income (Loss) Eliminations amount for Gold Star?
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) | 1,231,482 | 1,281,156 | (121,616) | 107,248 | 2,498,270 | ||||
| Other Comprehensive Gain | |||||||||
| Change in Fair Va |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Net Income (Loss) Eliminations was $107,248. This figure represents adjustments made to consolidate the financial results of Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC, which are related entities. These eliminations are necessary to avoid double-counting revenue, expenses, assets, or liabilities that occur within the consolidated group.
For a prospective Gold Star franchisee, understanding eliminations is crucial because it provides a clearer picture of the overall financial health and performance of the entire Gold Star organization, rather than just individual entities. This insight can help franchisees assess the stability and potential growth of the brand.
It is important to note that eliminations are a standard accounting practice when consolidating financial statements. Franchisees should focus on the consolidated totals to understand the true financial position of Gold Star. Reviewing these figures in the context of the entire financial statement can provide a more comprehensive understanding.