What was the total accumulated depreciation for Chili, Inc. related to property and equipment for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Repairs and Maintenance | 534,943 | | 590,096 | | 452,850 | | | Insurance and Employee Benefits | 627,508 | | 570,506 | | 603,409 | | | Rental Expense | 1,266,896 | | 1,398,953 | | 782,391 | | | Supplies and Printing | 386,976 | | 375,509 | | 476,074 | | | Professional Fees | 432,501 | | 497,206 | | 296,980 | | | Travel and Entertainment | 111,915 | | 107,848 | | 118,617 | | | Laundry and Uniforms | 63,170 | | 62,050 | | 43,702 | | | Charitable Contributions | 29,637 | | 26,256 | | 23,321 | | | Credit Loss Expense | 87,197 | | 275,483 | | 205,224 | | | Other Operating Expenses | 1,761,702 | | 1,043,859 | | 806,097 | | | Broker Fees | 198,190 | | 236,945 | | 226,791 | | | | | | | | | | | Total Selling, General and | | | | | | | | Administrative Expenses | $ 16,536,949 | $ | 15,025,353 | $ | 13,145,299 | |
GOLD STAR CHILI, INC. CONSOLIDATING BALANCE SHEET December 31, 2024
ASSETS
| Gold Star Chili, Inc. | Properties, LLC | TCWW, LLC | Eliminations | _ | Total | ||
|---|---|---|---|---|---|---|---|
| Current Assets | |||||||
| Cash | $ | 437,267 | $ 909,375 | $ 244,320 | $ - | $ | 1,590,962 |
| Accounts Receivable, Less Allowance for | ,, | ||||||
| Expected Credit Losses of $896,732 | 905,238 | 2,002,485 | 4,130 | (1,981,263) | 930,590 | ||
| Advance - Related Party | 3,441,832 | - | - | (3,441,832) | - | ||
| Other Receivables | 21,704 | - | 1,502 | - | 23,206 | ||
| Inventory | 980,151 | - | 27,923 | - | 1,008,074 | ||
| Prepaid Expenses | 166,348 | 109,041 | 15,154 | (12,824) | _ | 277,719 | |
| Total Current Assets | 5,952,540 | 3,020,901 | 293,029 | (5,435,919) | _ | 3,830,551 | |
| Property and Equipment | |||||||
| Land | - | 7,004,518 | - | (164,029) | 6,840,489 | ||
| Buildings | 4,127,417 | 10,257,116 | - | 817,551 | 15,202,084 | ||
| Leasehold Improvements | 5,500,864 | - | 429,641 | - | 5,930,505 | ||
| Furniture and Equipment | 5,913,212 | 184,794 | 535,932 | - | 6,633,938 | ||
| Vehicles | 100,623 | - | - | - | 100,623 | ||
| Construction in Progress | _ | 489,000 | - | - | . - | _ | 489,000 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the accumulated depreciation for Gold Star Chili, Inc. related to property and equipment as of a specific date is detailed in the consolidated balance sheets. The total accumulated depreciation was $9,164,879. This figure is part of a larger table that outlines the assets, liabilities, and equity of Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC.
This depreciation figure is important for prospective franchisees as it provides insight into the wear and tear and the reduction in value of the company's assets over time. Accumulated depreciation is a contra-asset account that reduces the book value of assets on the balance sheet. Understanding this number can help franchisees assess the overall financial health and asset management strategies of Gold Star.
For a potential franchisee, this information is useful in evaluating the financial stability and asset management practices of Gold Star. High accumulated depreciation relative to the total value of property and equipment might indicate older assets that could require future replacement or maintenance. Therefore, it's essential to consider this figure in conjunction with other financial metrics to get a comprehensive view of the company's financial standing.