What was the total Franchise Fees income for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The transaction price in a standard franchise arrangement primarily consists of (a) initial franchise fees; (b) continuing franchise fees (royalties); and (c) advertising fees. Since the Company considers the licensing of the franchising right to be a single performance obligation, no allocation of the transaction price is required.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
Based on the 2025 Gold Star Franchise Disclosure Document, the company recognizes revenue from initial franchise fees, continuing franchise fees (royalties), and advertising fees. The document states that Gold Star considers the licensing of the franchising right to be a single performance obligation, so no allocation of the transaction price is required.
However, the provided excerpts do not explicitly state the total income received from franchise fees. The financial statements included show various cash flows and financial data for Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC, but do not break out franchise fee income as a separate line item. Instead, the financial tables present consolidated figures for net income, depreciation, amortization, and changes in assets and liabilities.
Therefore, while the FDD mentions that franchise fees are a component of Gold Star's revenue, the specific total amount of franchise fee income is not disclosed in the provided excerpts. A prospective franchisee would need to request this information directly from Gold Star to fully understand the revenue streams and financial performance of the franchise system.