What was the right of use asset - operating leases for Chili, Inc. related to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gold Star Chili, Inc. | GSC Properties, LLC | TCWW, LLC | Eliminations | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Right of Use Asset - Operating Leases | 850,928 | - | 124,186 | - | 975,114 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the right of use asset - operating leases for Gold Star Chili, Inc. was $850,928. The right of use asset - operating leases for TCWW, LLC was $124,186. The total right of use asset - operating leases was $975,114.
In accounting terms, a 'right of use' asset represents a lessee's right to use an underlying asset for the lease term. This typically applies to leased properties or equipment. For a Gold Star franchisee, this indicates the value of the company's rights to use properties under operating leases, which are leases where the risks and rewards of ownership remain with the lessor.
Understanding these figures is crucial for prospective franchisees as it provides insight into the financial obligations and asset utilization strategies of Gold Star. It reflects the scale of leased assets Gold Star utilizes in its operations. Reviewing these figures in the context of overall financial statements can help potential franchisees assess the financial health and leasing strategies of Gold Star.