What was the net design cost for Gold Star in the second column?

According to Gold Star's 2025 Franchise Disclosure Document, the net design costs in the second column is $58,987. This figure represents the net value of design costs after accounting for accumulated amortization. Amortization is the process of gradually writing off the initial cost of an asset over its useful life. In this case, it reduces the recorded value of the design costs on Gold Star's balance sheet.

For a prospective Gold Star franchisee, understanding design costs is crucial because these expenses are typically associated with setting up and branding a new location or remodeling an existing one. These costs can include architectural services, interior design fees, and expenses related to creating a visually appealing and functional space that aligns with the Gold Star brand. The net figure indicates the remaining value of these design assets that Gold Star carries on its books.

It's important to note that the provided table includes both the initial cost and the accumulated amortization. This breakdown allows for a clearer picture of how these costs are being managed and depreciated over time. Franchisees may want to inquire about the typical lifespan over which design costs are amortized to better understand the long-term financial implications. Also, franchisees should confirm whether these figures are representative of the costs they might incur when establishing their own Gold Star location.