What was Gold Star's Depreciation and Amortization Expense in 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | |||
|---|---|---|---|
| 2024 2023 | (Restated) | ||
| Cash Flows From Operating Activities | |||
| Net Income | $ 2,498,270 $ 1,595,317 | $ 1,936,301 | |
| Reconciliation of Net Income with | |||
| Cash Flows From Operations | |||
| Depreciation | 1,249,072 930,216 | 807,295 | |
| Amortization | 63,323 | 70,168 69,297 | |
| Amortization on Loan Cost | 1 3,492 4 1,695 | 1 2,973 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total depreciation expense for the year 2024 was $1,249,072. The amortization expense totaled $63,323, while the amortization on loan cost was $13,492.
Depreciation is the expensing of a company's tangible assets over their useful life, while amortization is the same concept applied to intangible assets. These expenses reflect the reduction in value of Gold Star's assets like buildings, equipment, and trademarks as they are used over time.
For a prospective franchisee, understanding these figures is crucial for assessing the overall financial health and stability of Gold Star. These expenses can impact the profitability of the company, and ultimately, the potential returns for franchisees. Reviewing these expenses over multiple years, as presented in the FDD, can provide insights into how Gold Star manages its assets and investments.