What does CAM stand for in the context of Gold Star's lease expenses?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
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NOTE 14 - LEASES
The Company has signed twenty-four operating leases for which right of use assets were recorded on the consolidated balance sheets of the Company. As of December 31, 2024, 2023, and 2022, six leases are for buildings, nine leases are for equipment and furniture, and nine leases are for land. These leases expire on various dates through September 2048. In addition, the Company also has various operating leases that are
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the acronym 'CAM' appears in the context of lease expenses, specifically within the consolidated statements of selling, general, and administrative expenses. The document lists 'CAM' as a line item under 'Lease Expense,' alongside 'Operating Lease Expense' and 'Short-term Lease Expense.'
While the FDD does not explicitly define what 'CAM' stands for, it is listed as an expense related to leasing. In the franchise industry, CAM typically refers to Common Area Maintenance fees. These fees cover the costs associated with maintaining shared areas of a property, such as parking lots, landscaping, and walkways.
For a prospective Gold Star franchisee, understanding CAM charges is crucial for budgeting and financial planning. These fees can vary depending on the location and the terms of the lease agreement. Franchisees should clarify with Gold Star what specific costs are included under CAM for their location to accurately forecast their operating expenses. Examining the amounts Gold Star paid in 2022 ($42,732), 2023 ($51,275), and 2024 ($29,285) can provide a basis for estimating these costs.