What was the amount of Insurance and Employee Benefits paid by Gold Star in 2022 (Restated)?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------|---------------------------| | Retained Earnings, December 31, 2022, As Restated | $ 1,312,822 |
NOTE 25 – SUBSEQUENT EVENT
The Company has evaluated subsequent events through April 8, 2025, which is the date the consolidated financial statements were available to be issued.
In February 2025, the Company entered into a 15-year lease for a building in Hamilton, Ohio. The lease has three 5-year renewal options with a purchase option in years 20 through 30 of the lease. The lease will commence 30 days from the Company's opening for business to the public, which is anticipated to be April 2025. The rent payments over the life of the lease will be $476,124.
GOLD STAR CHILI, INC. CONSOLIDATED STATEMENTS OF SELLING , GENERAL AND ADMINISTRATIVE EXPENSES
| -------------------------- | -- |
|---|
| 2022 | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | (Restated) | ||||
| Research and Development | $ 35,511 | $ | 37,484 | $ | 41,997 | |
| Salaries and Wages | 6,959,176 | 6,101,035 | 5,600,894 | |||
| 401(k) Expense | 64,584 | 73,246 | 65,823 | |||
| Advertising Expense | 886,959 | 921,454 | 996,584 | |||
| Depreciation and Amortization Expense | 1,312,395 | 1,000,384 | 876,592 | |||
| State and Local Taxes | 755,808 | 757,139 | 716,467 | |||
| Pa |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company's Insurance and Employee Benefits expenses for the year 2022 (Restated) amounted to $603,409. This figure provides insight into the operational costs incurred by Gold Star at the corporate level. These expenses are part of the broader Selling, General, and Administrative Expenses.
For a prospective franchisee, understanding these corporate-level expenses can be helpful in assessing the overall financial health and stability of Gold Star. While franchisees typically bear their own operating expenses at the unit level, the franchisor's financial management can impact the support and resources available to franchisees. Significant fluctuations in these expenses from year to year could signal changes in the company's financial strategies or performance.
It's important to note that the 2022 financial statements were restated to correct monthly rental payments of operating leases, which affected right-of-use assets and operating lease liabilities. This restatement highlights the importance of carefully reviewing the notes and disclosures within the FDD to understand any adjustments or changes to the financial data presented. Franchisees should consider these factors when evaluating the financial performance of Gold Star.