What was the gain on early termination of lease for Gold Star in 2023?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, | |||
|---|---|---|---|
| 2024 2023 | (Restated) | ||
| Cash Flows From Operating Activities | |||
| Net Income | $ 2,498,270 $ 1,595,317 | $ 1,936,301 | |
| Reconciliation of Net Income with | |||
| Cash Flows From Operations | |||
| Depreciation | 1,249,072 930,216 | 807,295 | |
| Amortization | 63,323 | 70,168 69,297 | |
| Amortization on Loan Cost | 1 3,492 4 1,695 | 1 2,973 | |
| Loss on Disposal of Property and Equipment | - 4 4,694 | 5,367 | |
| Gain on Early Termination of Lease | - (26,298) | - |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company experienced a gain on early termination of a lease in 2023. Specifically, the consolidated statements show a gain of $26,298 related to the early termination of a lease.
This gain represents a financial benefit to Gold Star resulting from ending a lease agreement before its originally scheduled termination date. Such a gain could arise from various scenarios, such as renegotiating lease terms, relocating to a more favorable location, or downsizing operations. The $26,298 gain would positively impact Gold Star's overall financial performance for the year.
Prospective franchisees should note that while a gain on lease termination is a positive event, it is not a recurring revenue stream. It is a one-time event that reflects a specific situation. Reviewing Gold Star's financial statements and understanding the context behind such gains and losses is crucial for assessing the company's financial health and stability.