What is the reported total of Gold Star Chili, Inc.'s total liabilities?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gold Star Chili, Inc. | GSC Properties, LLC | TCWW, LLC | Eliminations | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Cash Flows From Operating Activities | - | - | _ | ||||||
| Net Income (Loss) | $ | 1,231,482 | $ | 1,281,156 | $ | (121,616) $ | 107,248 $ | ; | 2,498,270 |
| Reconciliation of Net Income (Loss) with | |||||||||
| Total Stockholders' Equity | 8,442,184 | 7 ,659,588 | 7 ,855,000 | ||||||
| Total Liabilities and Stockholders' Equity | $ 34,551,579 | $ 3 3,559,654 | $ 3 1,213,387 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the consolidated balance sheets include the total liabilities and stockholders' equity. The total liabilities and stockholders' equity for Gold Star Chili, Inc. is reported as $34,551,579 as of December 31, 2024. In the previous years, the total liabilities and equity was $33,559,654 as of December 2023, and $31,213,387 as of December 31, 2022.
For a prospective franchisee, understanding the liabilities and equity can offer insights into the financial structure and stability of Gold Star. A higher number may indicate a greater reliance on debt financing, while the equity portion reflects the ownership stake in the company. Reviewing these figures over the three years can reveal trends in the company's financial management and capitalization.
It is important to note that this figure represents the combined liabilities and equity. To fully understand the company's financial health, a franchisee should request the full balance sheet from Gold Star to see a detailed breakdown of liabilities, including current liabilities (such as accounts payable and short-term debt) and long-term liabilities. This will allow for a more informed assessment of the financial risks and obligations the company faces.