What was the total amount of eliminations related to long-term liabilities for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | (7,253,4 |
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 long-term liabilities is ($5,259,397). This figure represents adjustments made to consolidate the financial statements of Gold Star Chili, Inc. and its related entities.
Specifically, these eliminations are necessary to avoid double-counting liabilities that exist between the parent company and its subsidiaries. For example, if one Gold Star entity owes money to another, that debt is eliminated from the consolidated balance sheet to present a clear picture of the overall financial position.
For a prospective franchisee, understanding these eliminations is less critical than focusing on the overall liabilities and equity of the company. The consolidated totals, after eliminations, provide a more accurate view of Gold Star's financial health and stability. Franchisees should pay attention to the total long-term liabilities ($23,261,678) and total liabilities ($26,109,395) as these figures indicate the company's debt obligations.