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Goldsainte

Goldsainte Franchise, LLC
https://www.goldsainte.com/
1-866-239-8069
615 South College, 8 Floor, Charlotte, NC 28202

Initial Investment Range

$177,500 to $525,000

Franchise Fee

$45,000 to $125,000

The franchise is the right to develop, own, and operate, as part of the Goldsainte® system, a luxury vehicle rideshare and carshare service.

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Goldsainte February 7, 2024 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Goldsainte Franchise, LLC (Goldsainte) is a new company, formed in late 2023, and began franchising in February 2024. Item 21 states it cannot provide the required three years of financial statements and includes only an initial, unaudited opening balance sheet. This lack of audited financial history and operating performance presents a significant risk regarding the company's financial stability, its ability to support you, and its long-term viability, as its capacity to fulfill its obligations is unproven.

Potential Mitigations

  • A franchise accountant should review the provided unaudited balance sheet and assess the company's capitalization and financial structure.
  • Discuss the franchisor's funding and financial contingency plans with your business advisor, considering the lack of historical performance data.
  • Your attorney should advise on the implications of investing in a startup franchisor with no financial track record.
Citations: Item 1, Item 21, Exhibit F

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified in the FDD package. As a new franchisor that only began offering franchises in February 2024, Goldsainte has no history of franchised outlets. Therefore, there is no data on franchisee turnover, terminations, or non-renewals. High turnover is generally a critical red flag indicating potential systemic problems, so this will be a crucial metric to monitor in future FDDs if the system grows.

Potential Mitigations

  • You should ask the franchisor for their projections on franchisee success and support systems designed to prevent high turnover.
  • Once franchisees exist, speaking with them will be a critical step for future prospects, a process your attorney can help guide.
  • Your business advisor can help you understand industry benchmarks for turnover to use for comparison in the future.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The FDD projects extremely rapid growth, planning to open 225 new franchised outlets in the next fiscal year. For a brand-new system with no existing franchisees and only one company-owned store, this pace is exceptionally aggressive. Such rapid expansion could severely strain Goldsainte's resources, potentially leading to inadequate franchisee support, poor site selection, and a failure to maintain quality control across the system. This presents a substantial risk to early franchisees.

Potential Mitigations

  • Question the franchisor directly about their specific, scalable plans for infrastructure and personnel to support this projected growth.
  • Your business advisor can help you assess the feasibility of these projections and the associated risks of being part of such a rapid rollout.
  • An accountant should review the franchisor's financials to determine if they are adequately capitalized to support this level of expansion.
Citations: Item 20 Table 5

New/Unproven Franchise System

High Risk

Explanation

Goldsainte is a new, unproven franchise system. The franchisor entity was formed in late 2023 and has no operating history as a franchisor, no existing franchisees, and only one company-owned location. While management has some business experience, the franchise system itself, its operational support, brand recognition, and business model are entirely untested in the market. This represents a higher-than-average risk of business failure compared to established franchise systems.

Potential Mitigations

  • Conducting extensive due diligence on the viability of the core business model is critical; your business advisor can be instrumental in this process.
  • Your attorney should scrutinize the franchise agreement for any protections or favorable terms to offset the heightened risk of a new system.
  • A thorough analysis of the management team's direct experience in this industry and in managing franchise systems is warranted.
Citations: Item 1, Item 2, Item 20, Item 21

Possible Fad Business

Medium Risk

Explanation

The business model centers on a membership-based luxury rideshare and carshare service. While luxury car services are an established market, the specific membership-based model and its long-term consumer demand are unproven. The FDD's claim that market demand has

Potential Mitigations

  • Independent research into the long-term sustainability of membership-based luxury service models should be conducted with a business advisor.
  • Question the franchisor about their strategies for innovation and adaptation should the current market trends change.
  • Your financial advisor can help assess the business's potential resilience to economic shifts and evolving consumer preferences.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

The franchisor's management team's experience is detailed in Item 2. While the CEO has prior experience as a franchisee in a different system (Jimmy John's), the management team lacks disclosed experience in operating a franchisor or specific experience within the luxury vehicle service industry. This could pose a risk, as inexperienced franchisor management may lead to underdeveloped support systems, weak brand strategy, and an inability to effectively guide franchisees through industry-specific challenges.

Potential Mitigations

  • A business advisor can help you evaluate the management team's transferable skills and identify potential gaps in their expertise.
  • Question the franchisor about who they rely on for franchise operations and industry-specific guidance.
  • Given this is a new system, it's vital to assess if the training program is robust enough to compensate for potential management inexperience.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. FDD Item 1 does not indicate that the franchisor is owned or controlled by a private equity firm. Private equity ownership can sometimes lead to a focus on short-term profitability over the long-term health of the franchise system. Since this is not the case here, this specific risk is not present.

Potential Mitigations

  • Understanding the ownership structure of any franchisor is a key piece of due diligence your attorney can assist with.
  • Your business advisor can help research the track record of a franchisor's parent company, if any.
  • Always ask franchisees about any recent changes in ownership and the impact on their business.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 clearly discloses the parent company, Goldsainte, Inc. However, a related risk is that no financial statements for this parent company are provided. For a thinly capitalized startup subsidiary like Goldsainte Franchise, LLC, the financial health of the parent is a material consideration that is currently unknown.

Potential Mitigations

  • Your accountant should analyze the franchisor's balance sheet to assess its capitalization, independent of any parent support.
  • Inquiring about the relationship and financial backing provided by the parent company is a conversation to have with your attorney.
  • Understanding any formal guarantees from a parent company is crucial, and your attorney should review any such documents.
Citations: Item 1, Item 21

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 of the FDD clearly states that Goldsainte Franchise, LLC has no predecessors. A predecessor is a company from which the franchisor acquired the main assets of the business. Since there are no predecessors, there is no risk of hidden negative history from a prior version of the company.

Potential Mitigations

  • Verifying information about a franchisor's history, including any predecessors, is a standard part of due diligence an attorney performs.
  • For any franchise, asking long-tenured franchisees about the system's history can reveal important context.
  • A business advisor can help research the history of a brand and its prior owners.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that no litigation information is required to be disclosed. This means that, as of the FDD issuance date, there was no material litigation against the franchisor or its management that would require disclosure under federal franchise rules. For a new system, this is expected but provides no track record.

Potential Mitigations

  • Your attorney can perform independent searches for litigation that may have occurred after the FDD was issued.
  • Regularly reviewing the 'Litigation' section of updated FDDs is crucial for ongoing risk assessment.
  • It is wise to ask the franchisor directly if any material litigation has arisen since the FDD's issuance date.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
5
0
10

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
6
2
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
5
4
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
3
5
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
5
6
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
11
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.