What were the distributions for Gold Star in 2023?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 Activities | |||||||||
| Change in Line of Credit | (92,581) | _ | _ | _ | (92,581) | ||||
| Proceeds From Advances - Related Party | - | _ | 280,000 | (280,000) | - | ||||
| Payments on Advances - Related Party | _ | _ | (15,000) | 15,000 | _ | ||||
| Payments on Installment Note Payable | (417,910) | (363,561) | - | 123,138 | (658,333) | ||||
| Distributions | _ | (1,474,037) | _ | (340,244) | ( | (1,814,281 ) | |||
| Cash (Used) Provided by | |||||||||
| Financing Activities | (1,984,528) | (703,805) | 265,000 | (141,862) | - | (2,565,195) | |||
| I mancing Activities | _ | (1,304,320) | - | (703,003) | 203,000 | (141,002) | (2,303,193) |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, distributions for Gold Star Chili, Inc. totaled $340,244 and $1,474,037 in 2023. These distributions are reflected in the cash flows from financing activities. The distributions are part of a larger set of cash flow activities, which also include changes in the line of credit, proceeds from and payments on advances to related parties, and payments on installment notes payable. These activities collectively resulted in a total cash used by financing activities of ($703,805) for GSC Properties, LLC and ($1,984,528) for Gold Star Chili, Inc.
For a prospective franchisee, understanding these distributions is crucial as it provides insight into how Gold Star manages its finances and allocates profits. Distributions can impact the financial stability and growth potential of the company, which in turn can affect the franchisee's investment. It is important to note that these figures represent distributions at the corporate level and may not directly reflect the financial performance or distributions available to individual franchisees.
Franchisees should consider these figures in the context of the overall financial health of Gold Star. Analyzing the cash flow statement, including the cash flows from operating, investing, and financing activities, can provide a more comprehensive understanding of the company's financial management. Additionally, prospective franchisees should inquire about the factors influencing these distributions and how they might affect the long-term sustainability of the franchise system.