What was the total amount of land held by LLC as part of Gold Star's property and equipment?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2022 | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | (Restated) | ||||
| Research and Development | $ 35,511 | $ | 37,484 | $ | 41,997 | |
| Salaries and Wages | 6,959,176 | 6,101,035 | 5,600,894 | |||
| 401(k) Expense | 64,584 | 73,246 | 65,823 | |||
| Advertising Expense | 886,959 | 921,454 | 996,584 | |||
| Depreciation and Amortization Expense | 1,312,395 | 1,000,384 | 876,592 | |||
| State and Local Taxes | 755,808 | 757,139 | 716,467 | |||
| Payroll Taxes | 577,437 | 549,693 | 459,668 | |||
| Telephone and Utilities | 444,444 | 400,207 | 351,818 | |||
| Repairs and Maintenance | 534,943 | 590,096 | 452,850 | |||
| Insurance and Employee Benefits | 627,508 | 570,506 | 603,409 | |||
| Rental Expense | 1,266,896 | 1,398,953 | 782,391 | |||
| Supplies and Printing | 386,976 | 375,509 | 476,074 | |||
| Professional Fees | 432,501 | 497,206 | 296,980 | |||
| Travel and Entertainment | 111,915 | 107,848 | 118,617 | |||
| Laundry and Uniforms | 63,170 | 62,050 | 43,702 | |||
| Charitable Contributions | 29,637 | 26,256 | 23,321 | |||
| Credit Loss Expense | 87,197 | 275,483 | 205,224 | |||
| Other Operating Expenses | 1,761,702 | 1,043,859 | 806,097 | |||
| Broker Fees | 198,190 | 236,945 | 226,791 | |||
| Total Selling, General and | ||||||
| Administrative Expenses | $ 16,536,949 | $ | 15,025,353 | $ | 13,145,299 |
GOLD STAR CHILI, INC. CONSOLIDATING BALANCE SHEET December 31, 2024
ASSETS
| | | | GSC | | |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total amount of land held by GSC Properties, LLC as part of its property and equipment was $7,004,518 before eliminations. After eliminations, the net amount was $6,840,489 as of the balance sheet date.
GSC Properties, LLC is a rental real estate limited liability company (LLC) in which some of Gold Star's stockholders hold a 100% interest. Gold Star is the primary beneficiary of this variable interest entity (VIE) because it leases buildings from the LLC. Gold Star and its stockholders guarantee the debt of the VIE and must absorb any potential losses of GSC Properties, LLC. Therefore, Gold Star has a controlling financial interest in GSC Properties, LLC, and consolidation is required for accounting purposes.
The land and buildings held by GSC Properties, LLC serve as collateral for the LLC's obligations. Prospective franchisees should be aware of the relationship between Gold Star and GSC Properties, LLC, as it reflects the financial structure and obligations of the overall Gold Star enterprise. Understanding these relationships can provide a clearer picture of the company's financial health and stability.