What is the future minimum base rental revenue for Gold Star's leases in 2026?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Future minimum base rental revenue on the leases is as follows:
| Year Ended December 31, | ||
|---|---|---|
| 2025 | $ 2,903,045 | |
| 2026 | $ 2,843,445 | |
| 2027 | $ 2,783,845 | |
| 2028 | $ 2,724,245 | |
| 2029 | $ 2,664,645 | |
| Thereafter | $ 11,282,959 |
The Company has several agreements with lessees to occupy space in facilities originally leased or owned by the Company. The lease agreements are classified as operating leases. The leases expire at various times through February 2038. Rental revenue for the years ended December 31, 2024, 2023 and 2022 was $2,920,045, $2,587,280 and $2,139,485 respectively.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company anticipates a minimum base rental revenue of $2,843,445 from its leases in 2026. This revenue is derived from agreements with lessees occupying spaces originally leased or owned by Gold Star. These lease agreements are classified as operating leases and extend through February 2038.
For a prospective franchisee, this indicates that Gold Star generates a significant portion of its revenue from leasing or subleasing properties. This could be a stable source of income for the company, potentially offsetting some risks associated with franchise operations. The fact that leases extend to 2038 suggests long-term planning and commitment to these locations.
However, it's important to note that this figure represents the minimum base rental revenue. Actual rental revenue could be higher. A potential franchisee should inquire about the details of these lease agreements, including the number of properties involved, the terms of the leases, and the potential for revenue growth. Understanding the dynamics of Gold Star's leasing business can provide valuable insights into the company's overall financial health and stability.