What is the reported total of Gold Star Chili, Inc.'s current liabilities?
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 | | | | |-----------------------------------------------
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total current liabilities for Gold Star Chili, Inc. as of December 31, 2024, is $2,847,717. This figure is derived from consolidating balance sheet data that includes the parent company, its subsidiary TCWW, LLC, and its consolidated entity GSC Properties, LLC. The current liabilities encompass various short-term obligations, such as the line of credit, installment notes payable, advances from related parties, accounts payable, operating lease liabilities, gift card liability, accrued wages, accrued expenses, and deferred franchise fees.
For a prospective franchisee, understanding the current liabilities of Gold Star is crucial as it provides insight into the company's short-term financial obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect Gold Star's ability to support its franchisees or invest in growth initiatives. Conversely, a manageable level of current liabilities suggests financial stability and efficient management of short-term debt.
The balance sheet also breaks down the current liabilities for Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC individually, along with eliminations for intercompany transactions. This level of detail allows for a more granular analysis of where the liabilities are concentrated within the Gold Star corporate structure. For instance, the parent company, Gold Star Chili, Inc., has $4,269,976 in total current liabilities, while GSC Properties, LLC has $342,170, and TCWW, LLC has $229,658. The eliminations account for $(1,994,087), reflecting transactions between these entities that are removed for consolidated reporting purposes.
It is important for potential franchisees to review these figures in the context of Gold Star's overall financial health, including its assets, long-term liabilities, and equity. Comparing these liabilities to previous years can also reveal trends and potential areas of concern or improvement. Consulting with a financial advisor to interpret these financial statements is advisable for any prospective franchisee.