What was the loss on disposal of property and equipment 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 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the loss on disposal of property and equipment in 2023 was $4,694. This figure represents the expense Gold Star incurred when it disposed of property and equipment, such as selling assets for less than their book value or writing off assets that were no longer usable.
For a prospective franchisee, this specific figure may not be directly relevant to their individual franchise's performance. However, it provides insight into Gold Star's overall financial management and asset disposal practices. Understanding how the company handles asset depreciation and disposal can be useful in assessing the financial health and stability of the franchisor.
Franchisees should consider this information in the context of Gold Star's broader financial statements, including revenue, expenses, and overall profitability. A consistent pattern of losses on disposal could indicate issues with asset management or depreciation strategies, which could indirectly affect franchisees through potential impacts on franchise fees or required investments in equipment and property.