How many operating leases did Gold Star have for buildings as of December 31, 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has signed twenty-four operating leases for which right of use assets were recorded on the consolidated balance sheets of the Company. As of December 31, 2024, 2023, and 2022, six leases are for buildings, nine leases are for equipment and furniture, and nine leases are for land. These leases expire on various dates through September 2048. In addition, the Company also has various operating leases that are month-to-month or expire in twelve months or less and are not included on the consolidated balance sheets as of December 31, 2024, 2023, and 2022. These leases are subject to certain renewal and/or termination options, all of which were not included in the lease liabilities due to the options not being reasonably certain to be exercised.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company had several operating leases. As of December 31, 2024, Gold Star had six operating leases for buildings. These leases, along with others for equipment, furniture, and land, expire on various dates through September 2048.
In addition to the leases recorded on the consolidated balance sheets, Gold Star also has various operating leases that are month-to-month or expire within twelve months. These short-term leases are not included on the balance sheets for the years 2022, 2023, and 2024. These leases may also be subject to renewal or termination options, which are not included in the lease liabilities if they are not reasonably certain to be exercised.
Prospective franchisees should be aware of the lease obligations Gold Star has, as these can impact the financial health of the company. Understanding the nature and terms of these leases, including their expiration dates and renewal options, is important for assessing the company's financial stability. Additionally, franchisees may want to inquire about the terms of typical real estate leases that they may be required to enter into themselves when opening a new location.