What is the estimated amortization of loan closing costs for Gold Star franchises in 2028?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Loan closing cost associated with the issuance of long-term debt is capitalized and amortized over the life of the debt using the straight-line method. The respective long term debt is presented on the consolidated statements of income and comprehensive income, net of the unamortized loan closing cost. In accordance with Accounting Standards Update (ASU) 2015-03 Subtopic 835-30, these costs are shown on the consolidated balance sheets as a reduction of the loans to which they apply.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, specific projections for loan closing cost amortization in 2028 are not provided. However, the FDD does detail the company's accounting practices regarding loan closing costs. Loan closing costs associated with long-term debt are capitalized and amortized over the life of the debt using the straight-line method. The long-term debt is presented on the consolidated statements of income and comprehensive income, net of the unamortized loan closing cost. These costs are shown on the consolidated balance sheets as a reduction of the loans to which they apply.
To estimate the amortization for a Gold Star franchise in 2028, a prospective franchisee would need to know the initial loan closing costs, the term of the loan, and the amortization method (straight-line). This information is not present in the provided FDD excerpts.
To obtain a more precise estimate, a potential franchisee should ask Gold Star for detailed financial projections or examples that include loan amortization schedules. This will help in understanding the potential financial obligations and profitability timelines associated with opening a franchise.