What is the notes receivable value for Gold Star Chili, Inc.?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Repairs and Maintenance | 534,943 | | 590,096 | | 452,850 | | | Insurance and Employee Benefits | 627,508 | | 570,506 | | 603,409 | | | Rental Expense | 1,266,896 | | 1,398,953 | | 782,391 | | | Supplies and Printing | 386,976 | | 375,509 | | 476,074 | | | Professional Fees | 432,501 | | 497,206 | | 296,980 | | | Travel and Entertainment | 111,915 | | 107,848 | | 118,617 | | | Laundry and Uniforms | 63,170 | | 62,050 | | 43,702 | | | Charitable Contributions | 29,637 | | 26,256 | | 23,321 | | | Credit Loss Expense | 87,197 | | 275,483 | | 205,224 | | | Other Operating Expenses | 1,761,702 | | 1,043,859 | | 806,097 | | | Broker Fees | 198,190 | | 236,945 | | 226,791 | | | | | | | | | | | Total Selling, General and | | | | | | | | Administrative Expenses | $ 16,536,949 | $ | 15,025,353 | $ | 13,145,299 | |
GOLD STAR CHILI, INC. CONSOLIDATING BALANCE SHEET December 31, 2024
ASSETS
| Gold Star Chili, Inc. | Properties, LLC | TCWW, LLC | Eliminations | _ | Total | ||
|---|---|---|---|---|---|---|---|
| Current Assets | |||||||
| Cash | $ | 437,267 | $ 909,375 | $ 244,320 | $ - | $ | 1,590,962 |
| Accounts Receivable, Less Allowance for | ,, | ||||||
| Expected Credit Losses of $896,732 | 905,238 | 2,002,485 | 4,130 | (1,981,263) | 930,590 | ||
| Advance - Related Party | 3,441,832 | - | - | (3,441,832) | - | ||
| Other Receivables | 21,704 | - | 1,502 | - | 23,206 | ||
| Inventory | 980,151 | - | 27,923 | - | 1,008,074 | ||
| Prepaid Expenses | 166,348 | 109,041 | 15,154 | (12,824) | _ | 277,719 | |
| Total Current Assets | 5,952,540 | 3,020,901 | 293,029 | (5,435,919) | _ | 3,830,551 | |
| Property and Equipment | |||||||
| Land | - | 7,004,518 | - | (164,029) | 6,840,489 | ||
| Buildings | 4,127,417 | 10,257,116 | - | 817,551 | 15,202,084 | ||
| Leasehold Improvements | 5,500,864 | - | 429,641 | - | 5,930,505 | ||
| Furniture and Equipment | 5,913,212 | 184,794 | 535,932 | - | 6,633,938 | ||
| Vehicles | 100,623 | - | - | - | 100,623 | ||
| Construction in Progress | _ | 489,000 | - | - | . - | _ | 489,000 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the notes receivable for Gold Star Chili, Inc. is $1,817,565. However, this value is eliminated in the consolidated financial statement. This means that the notes receivable is an internal transaction that nets to zero when the company's financial activities are combined.
For a prospective franchisee, this information provides a glimpse into the financial transactions occurring within Gold Star and its related entities. Notes receivable typically represent money owed to the company, but in this case, it appears to be an internal debt that is canceled out during consolidation.
It is important to note that the elimination of notes receivable in the consolidated statement does not necessarily indicate a problem. It simply reflects the way the company accounts for financial relationships between its various entities. A potential franchisee might want to inquire further about the nature of these notes and the transactions they represent to gain a clearer understanding of Gold Star's internal financial structure.