What was the total amount of eliminations related to current liabilities for Gold Star?
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 | | | | |-----------------------------------------------
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total amount of eliminations related to current liabilities is reported as a negative figure. Specifically, the eliminations totaled $(1,994,087). This figure represents adjustments made to consolidate the financial statements of Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC, removing the effects of intercompany transactions to present a clearer picture of the overall financial position.
For a prospective franchisee, understanding eliminations is crucial as it reflects the true financial interactions between Gold Star and its related entities. These eliminations prevent double-counting of assets, liabilities, equity, and transactions within the consolidated group. In the context of current liabilities, eliminations might arise from items such as loans or payables between the parent company and its subsidiaries.
The negative value indicates that certain liabilities recorded within individual entities were offset during consolidation. This could be due to intercompany loans or other transactions that are eliminated to avoid inflating the overall liabilities of the consolidated group. Franchisees should be aware of these accounting adjustments, as they provide a more accurate view of the financial obligations of the entire Gold Star organization. It is advisable for potential franchisees to seek clarification from Gold Star regarding the nature of these eliminations to fully understand their implications.