What was the acquisition of property and equipment for Gold Star in 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 8,872 | | 633 | | - | 65,683 |
| Interest Expense | | (533,986) | | (331,489) | | - | | 73,388 | (792,087) | | Loss From Investment in | | | | | | | | | | | Limited Liability Company | | (121,616) | | - | | - | | 121,616 | - | | Insurance Proceeds | - | | - | 150,000 | | | | | 150,000 | | Total Other Income (Expenses) | _ | 369,466 | | 1,984,684 | | 633 | | (358,012) | 1,996,771 | | Net Income (Loss) | | 1,231,482 | | 1,281,156 | | (121,616) | | 107,248 | 2,498,270 | | Other Comprehensive Gain | | | | | | | | | | | Change in Fair Value of Interest | | 62,320 | | 36,287 | | _ | | _ | 98,607 | | Rate Swap | | | | | | | | | | | Naic Owap | - | 02,020 | - | 30,207 | - | | • | | 30,007 | | Comprehensive Income (Loss) | $_ | 1,293,802 | $_ | 1,317,443 | $ | (121,616) | $ | 107,248 $ | 2,596,877 |
GOLD STAR CHILI, INC. CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2024
| Gold Star Chili, Inc. | GSC Properties, LLC | TCWW, LLC | Eliminations | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Cash Flows From Operating Activities | - | - | _ | ||||||
| Net Income (Loss) | $ | 1,231,482 | $ | 1,281,156 | $ | (121,616) $ | 107,248 $ | ; | 2,498,270 |
| Reconciliation of Net Income (Loss) with | Ψ | 1,201,102 | Ψ | 1,201,100 | Ψ | (121,010) $ | 107,210 ψ | 2, 100,210 | |
| Cash Flows From Operations | |||||||||
| Depreciation | 906,075 | 230,368 | 98,261 | 14,368 | 1,249,072 | ||||
| Amortization | 54,392 | - | 8,931 | - | 63,323 | ||||
| Amortization on Loan Cost | 8,565 | 4,927 | - | - | 13,492 | ||||
| Loss From Investment in Limited | |||||||||
| Liability Company | 121,616 | - | - | (121,616) | - | ||||
| Changes In | |||||||||
| Accounts Receivable, Net | 228,658 | 146,463 | 349 | (168,637) | 206,833 | ||||
| Other Receivables | (589) | - | - | - | (589) | ||||
| Inventory | 487,782 | - | (4,643) | - | 483,139 | ||||
| Prepaid Expenses | 253,658 | 30,514 | 2,611 | (14,319) | 272,464 | ||||
| Deposits | 143,766 | - | - | - | 143,766 | ||||
| Right of Use Asset - Operating Leases | 850,928 | - | 124,186 | - | 975,114 | ||||
| Operating Lease Liabilities | (753,870) | - | (36,876) | - | (790,746) | ||||
| Accounts Payable Operating | (970,695) | (9,217) | (21,615) | 246,396 | (755,131) | ||||
| Gift Card Liability | - | - | 6,158 | - | 6,158 | ||||
| Deferred Franchise Fees | (16,726) | - | (1,100) | - | (17,826) | ||||
| Accrued Wages and Other Liabilities | 274,301 | - | (12,775) | - | 261,526 | ||||
| Accrued Expenses and Other Liabilities | _ | (38,401) | - | (167,339) | (44) | (205,784) | |||
| Cash Provided by | |||||||||
| Operating Activities | _ | 2,780,942 | - | 1,516,872 | 41,827 | 63,440 | 4,403,081 | ||
| Cash Flows From Investing Activities | |||||||||
| Advances - Related Party | (201,560) | - | - | 201,560 | - | ||||
| Payments on Notes Receivable | 123,138 | - | - | (123,138) | - | ||||
| Acquisition of Property and Equipment | _ | (448,905) | _ | (823,599) | (193,068) | ( | (1,465,572) | ||
| Cash Used by | |||||||||
| Investing Activities | _ | (527,327) | _ | (823,599) | (193,068) | 78,422 | ( | (1,465,572) | |
| Cash Flows From Financing Acti |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total acquisition of property and equipment for the company in 2024 was approximately $1,465,572. This total is derived from the sum of acquisitions made by Gold Star Chili, Inc. ($448,905), GSC Properties, LLC ($823,599), and TCWW, LLC ($193,068).
This figure reflects the company's investments in tangible assets during the year, which can include land, buildings, equipment, and other physical resources necessary for business operations. For a prospective franchisee, this indicates the level of capital investment Gold Star and its related entities are making in their physical infrastructure. It's important to note that these acquisitions are not solely for franchise locations but also encompass corporate-owned assets and investments made by related entities.
The statement of cash flows provides a comprehensive view of how Gold Star manages its cash, including investments in property and equipment. Franchisees should consider these figures in the context of the company's overall financial health and growth strategy. A significant investment in property and equipment could signal expansion and modernization efforts, which may benefit franchisees in the long run. However, it's also important to assess whether these investments are generating sufficient returns and contributing to the company's profitability.
Prospective franchisees might want to inquire about the specific types of property and equipment acquired, the rationale behind these investments, and how they are expected to impact franchise operations. Understanding the company's capital expenditure strategy can provide valuable insights into its long-term vision and commitment to supporting its franchise network.