What was the Depreciation Eliminations amount for Gold Star?
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 Depreciation Eliminations amount is $14,368. This figure is part of the reconciliation of net income to cash flows from operations. Depreciation is a non-cash expense that reflects the reduction in value of an asset over time.
In the context of consolidated financial statements, eliminations are accounting entries made to avoid double-counting items within the parent company and its subsidiaries. The $14,368 represents the portion of depreciation expense that was eliminated during the consolidation process. This suggests that there were intercompany transactions involving depreciable assets between Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC.
For a prospective franchisee, understanding these eliminations is less critical than understanding the overall depreciation expense, which impacts the company's profitability. However, it's useful to know that Gold Star's financial statements are consolidated, reflecting the financial performance of the entire group of related companies. Franchisees may want to inquire about the nature of these intercompany transactions to gain a clearer picture of how assets are managed within the Gold Star system.