What was the total value of land held by LLC related to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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
| Gold Star Chili, Inc. | Properties, LLC | TCWW, LLC | Eliminations | _ | Total | ||
|---|---|---|---|---|---|---|---|
| Current Assets | |||||||
| Cash | $ | 437,267 | $ 909,375 | $ 244,320 | $ - | $ | 1,590,962 |
| Accounts Receivable, Less Allowance for | ,, | ||||||
| Expected Credit Losses of $896,732 | 905,238 | 2,002,485 | 4,130 | (1,981,263) | 930,590 | ||
| Advance - Related Party | 3,441,832 | - | - | (3,441,832) | - | ||
| Other Receivables | 21,704 | - | 1,502 | - | 23,206 | ||
| Inventory | 980,151 | - | 27,923 | - | 1,008,074 | ||
| Prepaid Expenses | 166,348 | 109,041 | 15,154 | (12,824) | _ | 277,719 | |
| Total Current Assets | 5,952,540 | 3,020,901 | 293,029 | (5,435,919) | _ | 3,830,551 | |
| Property and Equipment | |||||||
| Land | - | 7,004,518 | - | (164,029) | 6,840,489 | ||
| Buildings | 4,127,417 | 10,257,116 | - | 817,551 | 15,202,084 | ||
| Leasehold Improvements | 5,500,864 | - | 429,641 | - | 5,930,505 | ||
| Furniture and Equipment | 5,913,212 | 184,794 | 535,932 | - | 6,633,938 | ||
| Vehicles | 100,623 | - | - | - | 100,623 | ||
| Construction in Progress | _ | 489,000 | - | - | . - | _ | 489,000 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total value of land held by GSC Properties, LLC as of December 31, 2024, was $7,004,518. After eliminations, the net value is $6,840,489. GSC Properties, LLC is a rental real estate limited liability company in which some of Gold Star's stockholders hold a 100% interest. Gold Star is the primary beneficiary of this variable interest entity (VIE) from which it leases buildings owned by the VIE.
The stockholders of Gold Star guarantee the debt of GSC Properties, LLC, meaning that Gold Star and its stockholders must absorb any potential losses of GSC Properties, LLC. Because of this relationship, Gold Star has a controlling financial interest in GSC Properties, LLC, and consolidation is required for accounting purposes.
It is important for a prospective Gold Star franchisee to understand these related-party transactions and how they impact the overall financial picture of the Gold Star business. Understanding the obligations and assets of GSC Properties, LLC, and its relationship to Gold Star, can provide a more comprehensive view of the financial stability of the Gold Star franchise system.