What was the reported amount for Gold Star accrued expenses and other liabilities for 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
solidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.
Prior Period Financial Statements
Dean Dotton allen Ford, PUC
The financial statements as of December 31, 2022, were audited by VonLehman & Company Inc., who merged with Dean Dorton Allen Ford, PLLC as of January 1, 2024.
Fort Wright, Kentucky
April 8, 2025
GOLD STAR CHILI, INC. CONSOLIDATED BALANCE SHEETS
ASSETS
| $ | | | | $ | |---|---|---|---|---| | | - | - | - | |
GOLD STAR CHILI, INC. CONSOLIDATED BALANCE SHEETS (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
| December 31, | |||
|---|---|---|---|
| 2022 | |||
| 2024 | 2023 | (Restated) | |
| Current Liabilities | |||
| Line of Credit | 100,008 | 92,581 | 1,681,630 |
| $ | $ | $ | |
| Installment Note Payable | 766,667 | 716,667 | 853,334 |
| Bank Overdraft | - | - | 432,410 |
| Accounts Payable Operating | 572,199 | 1,327,330 | 285,729 |
| Operating Lease Liabilities | 928,298 | 763,866 | 715,942 |
| Gift Card Liability | 70,167 | 64,009 | 61,100 |
| Accrued Wages and Related Liabilities | 380,675 | 119,149 | 92,363 |
| Accrued Expenses and Other Liabilities | 13,828 | 219,612 | 179,127 |
| Deferred Franchise Fees | 15,875 | 24,792 | 21,100 |
| Total Current Liabilities | 2,847,717 | 3,328,006 | 4,322,735 |
| Long-Term Liabilities (Less Current Portion) | |||
| Line of Credit | 1,399,992 | 802,996 | - |
| Installment Note Payable | 11,265,209 | 11,960,050 | 9,758,197 |
| Operating Lease Liabilities | 10,530,569 | 9,734,197 | 9,172,388 |
| Deferred Franchise Fees | 65,908 | 74,817 | 105,067 |
| Total Long-Term Liabilities | 23,261,678 | 22,572,060 | 19,035,652 |
| Total Liabilities | 26,109,395 | 25,900,066 | 23,358,387 |
| Stockholders' Equity | |||
| Gold Star Chili, Inc. Stockholders' E |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the reported amount for accrued expenses and other liabilities as of December 31, 2024, was $13,828. This figure is part of the company's current liabilities, which totaled $2,847,717 for the same period. It's important to note that this is a consolidated balance sheet figure, reflecting the financial position of Gold Star Chili, Inc. and its subsidiaries. Accrued expenses and other liabilities typically include short-term obligations that Gold Star has incurred but not yet paid, such as utilities, rent, or salaries.
For a prospective franchisee, understanding the accrued expenses and other liabilities is crucial because it provides insight into the company's short-term financial obligations. A lower figure might suggest efficient management of short-term liabilities, while a significantly higher figure could indicate potential cash flow challenges. It is also important to compare this figure with previous years to identify any trends or significant changes that may warrant further investigation. In this case, the accrued expenses and other liabilities for 2023 were $219,612, indicating a notable decrease in 2024.
It's also worth noting that the balance sheet includes various other liabilities, such as line of credit, installment notes payable, accounts payable, operating lease liabilities, and deferred franchise fees. These liabilities, along with stockholders' equity, contribute to the total liabilities and stockholders' equity, which amounted to $34,551,579 as of December 31, 2024. Reviewing these figures in totality provides a more comprehensive understanding of Gold Star's financial health and stability.
Prospective franchisees should consult with a financial advisor to fully understand the implications of these figures and how they might impact their investment. Analyzing the trends in liabilities and equity over the past few years can offer valuable insights into the financial management and overall performance of Gold Star.