What was the total amount of current liabilities for Gold Star Chili, Inc.?
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
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Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total current liabilities for Gold Star Chili, Inc. is $4,269,976. This figure represents the sum of various short-term financial obligations that Gold Star has to settle within a year. These obligations include items such as the line of credit, installment notes payable, advances from related parties, accounts payable, operating lease liabilities, gift card liabilities, accrued wages, accrued expenses, and deferred franchise fees.
For a prospective franchisee, understanding the current liabilities of Gold Star is crucial because it provides insight into the company's short-term financial health and stability. A high level of current liabilities relative to current assets might indicate potential liquidity issues, which could affect Gold Star's ability to support its franchisees or invest in growth initiatives. Conversely, a manageable level of current liabilities suggests that Gold Star is in a good position to meet its short-term obligations and continue its operations smoothly.
It is important to note that the total current liabilities are part of a larger financial picture, and should be analyzed in conjunction with other financial metrics such as total assets, long-term liabilities, and equity. A comprehensive review of Gold Star's balance sheet, income statement, and cash flow statement would provide a more complete understanding of the company's financial condition and its ability to support its franchise system. Prospective franchisees should consult with a financial advisor to fully assess the financial risks and opportunities associated with investing in a Gold Star franchise.