What was the fair value of the interest rate swap for Chili, Inc. related to Gold Star?

According to Gold Star's 2025 Franchise Disclosure Document, the fair value of the interest rate swap as of December 31, 2024, for Gold Star Chili, Inc. is $194,930 and for GSC Properties, LLC, it is $113,503. The combined total fair value of the interest rate swap is $308,433.

For a prospective franchisee, understanding the fair value of interest rate swaps can be important as it reflects the financial strategies and risk management practices of Gold Star. Interest rate swaps are used to manage interest rate risk, and their fair value indicates the current market assessment of these strategies. A positive fair value might suggest that the swaps are currently benefiting the company, while a negative value could indicate a liability.

It is important to note that these values are as of a specific date (December 31, 2024) and can fluctuate over time due to changes in market interest rates and other economic factors. Franchisees should consider these figures as part of their broader due diligence, assessing the overall financial health and risk management practices of Gold Star. Further investigation into the nature and terms of these interest rate swaps may provide additional insights into the company's financial strategy.