What was the Stockholders' (Deficit) Equity for Gold Star in the second period shown?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gold Star Chili, Inc. Stockholders' Equity | ||||
|---|---|---|---|---|
| Common Stock, No Par Value; 10,000 Shares | ||||
| Authorized, Issued and Outstanding | 1 ,000 | 1,000 | 1,000 | |
| Paid-In Capital | 212,680 | 212,680 | 212,680 | |
| Retained (Deficit) Earnings | (537,818) | (295,263) | 350,576 | |
| Accumulated Other Comprehensive Income (Loss) | 1 94,930 | 132,610 | 389,268 | |
| Stockholders' (Deficit) Equity | (129,208) | 51,027 | 9 53,524 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Stockholders' (Deficit) Equity for the second period presented was $51,027. This figure represents the net worth attributable to the stockholders of Gold Star Chili, Inc. after considering assets, liabilities, and other equity components.
The provided balance sheets offer a snapshot of Gold Star's financial position over three years. The Stockholders' Equity is calculated by subtracting total liabilities from total assets, reflecting the owners' stake in the company. A positive Stockholders' Equity indicates that assets exceed liabilities, while a negative value, or deficit, suggests the opposite.
For a prospective franchisee, this information is crucial in assessing the financial stability and overall health of Gold Star. A consistently positive and growing Stockholders' Equity generally indicates a strong and well-managed company. However, it's important to review these figures in conjunction with other financial statements and industry benchmarks to gain a comprehensive understanding of Gold Star's financial performance and potential risks.