What was the reported total of Gold Star's long-term liabilities before adjustments?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Long-Term Liabilities | ||||
|---|---|---|---|---|
| (Less Current Portion) | ||||
| Line of Credit | 1,399,992 | - | - | - |
| Installment Note Payable | 7,151,608 | 5,931,166 | - | (1,817,565) |
| Operating Lease Liabilities | 8,674,979 | - | 1,855,590 | - |
| Advances - Related Party | - | - | 3,441,832 | (3,441,832) |
| Deferred Franchise Fees | 60,041 | 5,867 | ||
| Total Long-Term Liabilities | 17,286,620 | 5,931,166 | 5,303,289 | (5,259,397) |
| Total Liabilities | 21,556,596 | 6,273,336 | 5,532,947 | (7,253,484) |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total long-term liabilities are detailed in the consolidating balance sheet. The balance sheet lists several components of long-term liabilities, such as the line of credit, installment notes payable, operating lease liabilities, advances from related parties, and deferred franchise fees. These individual liabilities are then summed to arrive at a total.
Specifically, the total long-term liabilities for Gold Star Chili, Inc. before eliminations or adjustments, amounted to $17,286,620. Additionally, GSC Properties, LLC had long-term liabilities totaling $5,931,166, and TCWW, LLC had $5,303,289 in long-term liabilities. These figures represent the obligations extending beyond the current year for each entity within the consolidated group.
It's important to note that these figures are 'before adjustments,' meaning they do not reflect eliminations made during the consolidation process. These eliminations, amounting to ($5,259,397), are accounting adjustments made to avoid double-counting liabilities within the consolidated entity. The final 'Total' long-term liabilities after these adjustments is $23,261,678. A prospective franchisee should understand the nature of these long-term liabilities, as they reflect the financial obligations Gold Star has in place, which could impact the financial stability and future growth of the company.