What was the amortization expense for Gold Star in 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net Sales | $ | 23,132,556 | $ | - | $ | 2,972,196 | $ | - $ | 26,104,752 |
|---|---|---|---|---|---|---|---|---|---|
| Cost of Sales | _ | 8,296,902 | _ | 769,402 | 9,066,304 | ||||
| Gross Profit | 14,835,654 | - | 2,202,794 | - | 17,038,448 | ||||
| Selling, General and | 12.072.620 | 702 529 | 2 225 042 | (465.260) | 16 526 040 | ||||
| Administrative Expenses | - | 13,973,638 | - | 703,528 | 2,325,043 | - | (465,260) | 16,536,949 | |
| Income (Loss) From Operations | _ | 862,016 | _ | (703,528) | (122,249) | 465,260 | 501,499 | ||
| Other Income (Expenses) | |||||||||
| Rental Income | 1,242,372 | 2,157,301 | _ | (479,628) | 2,920,045 | ||||
| Rent Expense | (363,595) | - | - | - | (363,595) | ||||
| Franchise Fees | 16,725 | - | - | - | 16,725 | ||||
| Interest Income | 73,388 | - | - | (73,388) | - | ||||
| Other Income | 56,178 | 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 $ | 2,59 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total amortization expense for the company in 2024 was $63,323. This figure is derived from the consolidating statement of cash flows, which breaks down amortization expenses across different entities within the Gold Star system. Specifically, Gold Star Chili, Inc. had an amortization expense of $54,392, while TCWW, LLC, another entity listed in the statement, had an amortization expense of $8,931. The sum of these amounts represents the total amortization expense. There was also amortization on loan costs of $13,492.
Amortization is the process of spreading out the cost of an intangible asset over its useful life. For a Gold Star franchisee, understanding these expenses is crucial because it reflects how the company manages and accounts for its long-term assets. It's also important to note that GSC Properties, LLC, another entity listed in the statement, did not have any amortization expense in 2024.
Prospective franchisees should pay attention to these figures as they provide insight into the financial management and capital structure of Gold Star. While amortization itself is a non-cash expense, it impacts the company's reported profits and can affect various financial ratios used to assess the company's performance. Reviewing these figures over several years, as presented in the statement (2022-2024), can reveal trends and patterns in how Gold Star manages its assets and liabilities.