What was the rental revenue for Gold Star for the year ended December 31, 2022?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| 67,042 | $ 730,372 | ||
|---|---|---|---|
| ROU Assets Obtained in Exchange for New | |||
| Operating Lease Liabilities | $ 1,752,987 | $ 1,960,567 | $ 10,405,958 |
| Weighted-Average Remaining Lease Term in | |||
| Years for Operating Leases | 1 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company's rental revenue for the year ending December 31, 2022, was $2,139,485. This revenue is derived from lease agreements classified as operating leases, where Gold Star acts as the lessor, allowing other businesses to occupy space in facilities that Gold Star originally leased or owned. These leases extend through February 2038, indicating a long-term strategy of generating income from real estate assets.
For a prospective franchisee, this indicates that Gold Star has a diversified revenue stream beyond just franchise fees and sales from its Gold Star Chili restaurants. The rental income provides financial stability to the company. This may also mean that Gold Star has experience in managing properties, which could be a resource for franchisees in selecting and maintaining their locations.
The fact that Gold Star engages in leasing activities also suggests that real estate and location strategy are important aspects of the business model. Franchisees may benefit from Gold Star's expertise in identifying and securing suitable locations. However, it's important for potential franchisees to understand how these leasing arrangements might impact their own operations, particularly if Gold Star is involved in subleasing or managing the property where their franchise is located.
It is also worth noting that the 2022 financial statements were restated to correct monthly rental payments of operating leases associated with right of use assets and operating lease liabilities. The effect of the restatement was to reduce the right of use asset and the operating lease liabilities by $305,426.