What was the short-term lease expense for Gold Star in 2022?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
espectively.
NOTE 14 - LEASES
The Company has signed twenty-four operating leases for which right of use assets were recorded on the consolidated balance sheets of the Company. As of December 31, 2024, 2023, and 2022, six leases are for buildings, nine leases are for equipment and furniture, and nine leases are for land. These leases expire on various dates through September 2048. In addition, the Company also has various operating leases that are
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company's short-term lease expense for the year ended December 31, 2022, was $348,792. This figure reflects the expenses Gold Star incurred for leases with a term of 12 months or less during that year. These short-term leases could be for equipment, vehicles, or real estate.
For a prospective franchisee, understanding the short-term lease expenses of the franchisor can provide insight into the types of leasing obligations Gold Star typically undertakes. While franchisees will be responsible for their own location's lease, this information can be helpful for benchmarking and understanding potential operational costs.
It's important to note that this figure represents Gold Star's expenses as a company, and not the expenses a franchisee would incur. Franchisees should conduct their own due diligence to estimate their potential short-term lease expenses based on their specific business operations and local market conditions.