Does Gold Star have set repayment terms for advances to and from related parties?

According to Gold Star's 2025 Franchise Disclosure Document, the company has advances to and from related parties. As of December 31, 2024, 2023, and 2022, these advances are non-interest bearing and occur within the normal course of business. Importantly, there are no set repayment terms for these advances. All such advances are eliminated upon consolidation.

For a prospective franchisee, this means that Gold Star engages in financial transactions with related parties, but these transactions do not have fixed schedules for repayment. The absence of interest and set repayment terms could suggest a degree of flexibility in these internal financial dealings. However, it also introduces a level of uncertainty, as the timing of repayments is not predetermined.

It is worth noting that these advances are eliminated upon consolidation, which implies that they are internal to the company's overall financial reporting and do not represent external debts or obligations. While this arrangement might not directly impact the franchisee's day-to-day operations, understanding the nature of these related-party transactions can provide a more comprehensive view of Gold Star's financial practices. A prospective franchisee may want to inquire further about the typical duration and purpose of these advances to related parties to better assess any potential implications.