What was the Non-Controlling Interest in GSC Properties, LLC for Gold Star in the third period shown?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gold Star Chili, Inc. Stockholders' Equity | ||||
|---|---|---|---|---|
| Common Stock, No Par Value; 10,000 Shares | ||||
| Authorized, Issued and Outstanding | 1 ,000 | 1,000 | 1,000 | |
| Paid-In Capital | 212,680 | 212,680 | 212,680 | |
| Retained (Deficit) Earnings | (537,818) | (295,263) | 350,576 | |
| Accumulated Other Comprehensive Income (Loss) | 1 94,930 | 132,610 | 389,268 | |
| Stockholders' (Deficit) Equity | (129,208) | 51,027 | 9 53,524 | |
| Non-Controlling Interest in GSC Properties, LLC | 8,457,889 | 7 ,531,345 | 6 ,674,814 | |
| Accumulated Other Comprehensive Income | 1 13,503 | 7 7,216 | 2 26,662 | |
| GSC Properties, LLC | 8,571,392 | 7 ,608,561 | 6 ,901,476 | |
| Total Stockholders' Equity | 8,442,184 | 7 ,659,588 | 7 ,855,000 | |
| Total Liabilities and Stockholders' Equity | $ 34,551,579 | $ 3 3,559,654 | $ 3 1,213,387 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Non-Controlling Interest in GSC Properties, LLC for the third period listed was $6,674,814. This figure represents the portion of equity in GSC Properties, LLC not held by Gold Star Chili, Inc. GSC Properties, LLC, is a rental real estate limited liability company (LLC). Some of Gold Star's stockholders hold a 100% interest in GSC Properties, LLC.
As Gold Star is the primary beneficiary of this VIE (Variable Interest Entity) and guarantees its debt, it consolidates GSC Properties, LLC into its financial statements. This consolidation means that the assets, liabilities, and equity of GSC Properties, LLC are combined with those of Gold Star for financial reporting purposes. The non-controlling interest reflects the outside ownership stake in this consolidated entity.
For a prospective franchisee, understanding the relationship between Gold Star and GSC Properties, LLC is crucial. While franchisees may not directly interact with GSC Properties, LLC, its financial performance impacts Gold Star's overall financial health. The fact that some of Gold Star's stockholders hold 100% interest in GSC Properties, LLC, could present potential conflicts of interest or at least require careful monitoring to ensure fair dealings between the entities. Franchisees should seek clarification from Gold Star regarding the governance and operational relationship between the two entities to fully understand any potential implications.