What is the trademark value for TCWW, LLC?
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 trademark associated with TCWW, LLC is valued at $475,000. This valuation is derived from the consolidated balance sheets as of December 31, 2024. The trademark was initially capitalized during the purchase of TCWW, LLC in 2017 and is measured for impairment annually.
For a prospective Gold Star franchisee, this indicates that the brand's trademark, partly acquired through TCWW, LLC, holds significant value as an asset. The annual impairment measurement suggests that Gold Star actively monitors the trademark's value, although no adjustments were necessary in 2022, 2023, or 2024. This could imply a stable and well-managed brand identity.
It's important to note that while the trademark is considered an asset, its value can fluctuate based on various factors, including market conditions and brand performance. Franchisees benefit from the established trademark, which aids in brand recognition and customer loyalty. However, they also share the risk that the trademark's value could decrease if the brand suffers reputational damage or loses market share.