What is the relationship between Gold Star Chili, Inc. and TCWW, LLC?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The consolidated financial statements of Gold Star Chili, Inc. (the Company) include its subsidiary, TCWW, LLC, and its consolidated entity, GSC Properties, LLC, a variable interest entity for which the Company owns no equity.
Gold Star Chili, Inc. is primarily engaged in the production and distribution of chili and related products to franchisees and Company owned chili restaurants. The Company has 9 Company stores and 48 franchise locations as of December 31, 2024. The Company also sells chili products through grocery stores. In addition, revenue is derived from franchisees in the form of initial franchise fees and royalty fees. Credit is extended to franchisees and grocery stores based on established credit policies. The Company's principal markets are Greater Cincinnati, Dayton, Ohio and Lexington, Kentucky. The Company's viability is dependent on the ability to sell additional franchises, success of stores to generate sales and the Company's ability to collect its revenue from franchisees.
TCWW, LLC franchises the right to operate Tom + Chee restaurants across the United States. There is 1 franchise location, and there are 4 Company stores. TCWW, LLC was acquired in September 2017. Revenue is derived from store sales, franchisees in the form of initial franchise fees, royalties and advertising funds.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, TCWW, LLC is a subsidiary of Gold Star Chili, Inc. The consolidated financial statements of Gold Star include its subsidiary, TCWW, LLC. This means that Gold Star owns and controls TCWW, LLC. Gold Star acquired TCWW, LLC in September 2017. TCWW, LLC franchises the right to operate Tom + Chee restaurants across the United States. As of December 31, 2024, there was 1 franchise location and 4 company-owned stores. TCWW, LLC generates revenue from store sales, initial franchise fees, royalties, and advertising funds from its franchisees. Gold Star's financial performance is linked to TCWW, LLC through the consolidated financial statements. The auditor's report also confirms that the audit covers Gold Star, its subsidiary TCWW, LLC, and its consolidated entity, GSC Properties, LLC.