What was the total adjustment amount for Gold Star's liabilities?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
75,716 | | Fair Value of Interest Rate Swap | | 194,930 | 113,503 | - | . - | _ | 308,433 | | Other Assets | | | | | | | | | Right of Use Asset - Operating Leases | | 9,246,018 | _ | 1,846,237 | _ | | 11,092,255 | | Goodwill, Net | | 381,667 | _ | 67,719 | - | | 449,386 | | Trademark | | - | _ | 475,000 | _ | | 475,000 | | Intangibles Subject to Amortization | | 48.595 | _ | - | _ | | 48,595 | | Deposits | | 154,174 | 5,763 | 11,706 | _ | | 171,643 | | Investment in Subsidiary | | (2,164,835) | -, | , | 2,164,835 | | - | | Notes Receivable | | 1,817,565 | - | - | (1,817,565) | _ | | | Total Other Assets | | 9,483,184 | 5,763 | 2,400,662 | 347,270 | _ | 12,236,879 | Total Assets $ __22,596,891 $ __13,748,932 $ __3,368,112 $ __(5,162,356) $ __34,551,579
GOLD STAR CHILI, INC. CONSOLIDATING BALANCE SHEET December 31, 2024 (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
| GSC | |||||
|---|---|---|---|---|---|
| Gold Star | Properties, | ||||
| Chili, Inc. | LLC | TCWW, LLC | Eliminations | Total | |
| Current Liabilities | |||||
| Line of Credit | , | $ - : | $ - | , | |
| Installment Note Payable | 486,680 | 279,987 | - | - | 766,667 |
| Advances - Related Party | 1,940,597 | - | - | (1,940,597) | - |
| Accounts Payable Operating | 534,335 | 43,480 | 47,874 | (53,490) | 572,199 |
| Operating Lease Liabilities | 824,874 | - | 103,424 | - | 928,298 |
| Gift Card Liability | - | - | 70,167 | - | 70,167 |
| Accrued Wages and Related Liabilities | 373,538 | - | 7,137 | - | 380,675 |
| Accrued Expenses and Other Liabilities | (4,831) | 18,703 | (44) | - | 13,828 |
| Deferred Franchise Fees | 14,775 | 1,100 | 15,875 | ||
| Total Current Liabilities | 4,269,976 | 342,170 | 229,658 | (1,994,087) | 2,847,717 |
| Long-Term Liabilities | |||||
| (Less Current Portion) | |||||
| Line of Credit | 1,399,992 | - | - | - | 1,399,992 |
| Installment Note Payable | 7,151,608 | 5,931,166 | - | (1,817,565) | 11,265,209 |
| Operating Lease Liabilities | 8,674,979 | - | 1,855,590 | - | 10,530,569 |
| Advances - Related Party | - | - | 3,441,832 | (3,441,832) | - |
| Deferred Franchise Fees | 60,041 | 5,867 | 65,908 | ||
| Total Long-Term Liabilities | 17,286,620 | 5,931,166 | 5,303,289 | (5,259,397) | 23,261,678 |
| Total Liabilities | 21,556,596 | 6,273,336 | 5,532,947 | (7,253,484) | 26,109,395 |
| Stockholders' Equity | |||||
| Common Stock, No Par Value; | |||||
| 10,000 Shares Authorized, Issued | |||||
| and Outstanding | 1,000 | _ |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total adjustment amount for liabilities is listed as ($7,253,484). This adjustment is part of the consolidated balance sheet, which combines the financial positions of Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC. The adjustment accounts for eliminations made during the consolidation process.
In practical terms, this negative adjustment reduces the overall reported liabilities when the individual entities' financials are combined. These eliminations typically occur to avoid double-counting items such as intercompany loans or transactions. For a prospective franchisee, understanding these adjustments is crucial for assessing the true financial health and structure of the Gold Star franchise system.
It's important to note that while the consolidated balance sheet provides a comprehensive view, it may not directly reflect the financial performance of an individual Gold Star franchise location. Franchisees should focus on understanding how these consolidated figures relate to the specific obligations and financial performance of their own franchise unit. Reviewing the complete financial statements and seeking professional financial advice is recommended to fully grasp the implications of these adjustments.