How are Gold Star's rental revenues recognized?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| ng Leases | $ 1,205,394 | $ 1,067,042 | $ 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 | 15.71 | 15.98 | 15.36 |
| Weighted-Average Discount Rate for |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company has agreements with lessees to occupy space in facilities they originally leased or owned. These lease agreements are classified as operating leases and expire at various times through February 2038.
The document states that rental revenue for the years ended December 31, 2024, 2023, and 2022 was $2,920,045, $2,587,280, and $2,139,485 respectively. This indicates a trend of increasing rental revenue for Gold Star over these three years.
The FDD also includes a schedule of future minimum base rental revenue on these leases, although the specific amounts and timeframes are not included in the provided documentation. This leasing activity is managed through GSC Properties, LLC, which rents real estate to Gold Star, its franchisees, and third parties.