What is the reported amount of Gold Star's deferred franchise fees after adjustments?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
75,716 | | Fair Value of Interest Rate Swap | | 194,930 | 113,503 | - | . - | _ | 308,433 | | Other Assets | | | | | | | | | Right of Use Asset - Operating Leases | | 9,246,018 | _ | 1,846,237 | _ | | 11,092,255 | | Goodwill, Net | | 381,667 | _ | 67,719 | - | | 449,386 | | Trademark | | - | _ | 475,000 | _ | | 475,000 | | Intangibles Subject to Amortization | | 48.595 | _ | - | _ | | 48,595 | | Deposits | | 154,174 | 5,763 | 11,706 | _ | | 171,643 | | Investment in Subsidiary | | (2,164,835) | -, | , | 2,164,835 | | - | | Notes Receivable | | 1,817,565 | - | - | (1,817,565) | _ | | | Total Other Assets | | 9,483,184 | 5,763 | 2,400,662 | 347,270 | _ | 12,236,879 | Total Assets $ __22,596,891 $ __13,748,932 $ __3,368,112 $ __(5,162,356) $ __34,551,579
GOLD STAR CHILI, INC. CONSOLIDATING BALANCE SHEET December 31, 2024 (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
| GSC | |||||
|---|---|---|---|---|---|
| Gold Star | Properties, | ||||
| Chili, Inc. | LLC | TCWW, LLC | Eliminations | Total | |
| Current Liabilities | |||||
| Line of Credit | , | $ - : | $ - | , | |
| Installment Note Payable | 486,680 | 279,987 | - | - | 766,667 |
| Advances - Related Party | 1,940,597 | - | - | (1,940,597) | - |
| Accounts Payable Operating | 534,335 | 43,480 | 47,874 | (53,490) | 572,199 |
| Operating Lease Liabilities | 824,874 | - | 103,424 | - | 928,298 |
| Gift Card Liability | - | - | 70,167 | - | 70,167 |
| Accrued Wages and Related Liabilities | 373,538 | - | 7,137 | - | 380,675 |
| Accrued Expenses and Other Liabilities | (4,831) | 18,703 | (44) | - | 13,828 |
| Deferred Franchise Fees | 14,775 | 1,100 | 15,875 | ||
| Total Current Liabilities | 4,269,976 | 342,170 | 229,658 | (1,994,087) | 2,847,717 |
| Long-Term Liabilities | |||||
| (Less Current Portion) | |||||
| Line of Credit | 1,399,992 | - | - | - | 1,399,992 |
| Installment Note Payable | 7,151,608 | 5,931,166 | - | (1,817,565) | 11,265,209 |
| Operating Lease Liabilities | 8,674,979 | - | 1,855,590 | - | 10,530,569 |
| Advances - Related Party | - | - | 3,441,832 | (3,441,832) | - |
| Deferred Franchise Fees | 60,041 | 5,867 | 65,908 | ||
| Total Long-Term Liabilities | 17,286,620 | 5,931,166 | 5,303,289 | (5,259,397) | 23,261,678 |
| Total Liabilities | 21,556,596 | 6,273,336 | 5,532,947 | (7,253,484) | 26,109,395 |
| Stockholders' Equity | |||||
| Common Stock, No Par Value; | |||||
| 10,000 Shares Authorized, Issued | |||||
| and Outstanding | 1,000 | _ | _ | _ | 1,000 |
| Paid-In Capital | 212,680 | _ | _ | _ | 212,680 |
| Retained Earnings |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company reports deferred franchise fees as part of its current and long-term liabilities. These figures reflect the initial franchise fees that Gold Star has collected but not yet recognized as revenue, as they relate to services the company will provide over time.
Specifically, under current liabilities, Gold Star lists deferred franchise fees of $14,775. Additionally, TCWW, LLC, which appears to be a related entity, lists $1,100 in deferred franchise fees. The total current deferred franchise fees amount to $15,875. For long-term liabilities, Gold Star lists $60,041 in deferred franchise fees, while TCWW, LLC lists $5,867. The total long-term deferred franchise fees amount to $65,908.
These deferred amounts are significant for prospective franchisees because they represent Gold Star's obligation to provide ongoing support and services. The fact that these fees are deferred over time aligns with the typical franchise model, where the franchisor's obligations extend throughout the term of the franchise agreement. Reviewing these figures can give a franchisee insight into the financial structure and revenue recognition practices of Gold Star.