What was the total amount of all liabilities for Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
solidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.
Prior Period Financial Statements
Dean Dotton allen Ford, PUC
The financial statements as of December 31, 2022, were audited by VonLehman & Company Inc., who merged with Dean Dorton Allen Ford, PLLC as of January 1, 2024.
Fort Wright, Kentucky
April 8, 2025
GOLD STAR CHILI, INC. CONSOLIDATED BALANCE SHEETS
ASSETS
| $ | | | | $ | |---|---|---|---|---| | | - | - | - | |
GOLD STAR CHILI, INC. CONSOLIDATED BALANCE SHEETS (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
| December 31, | |||
|---|---|---|---|
| 2022 | |||
| 2024 | 2023 | (Restated) | |
| Current Liabilities | |||
| Line of Credit | 100,008 | 92,581 | 1,681,630 |
| $ | $ | $ | |
| Installment Note Payable | 766,667 | 716,667 | 853,334 |
| Bank Overdraft | - | - | 432,410 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total liabilities for the company in 2024 amounted to $26,109,395. This figure represents the sum of all current and long-term liabilities of Gold Star. In 2023, the total liabilities were $25,900,066, and in 2022 (restated), the total was $23,358,387.
Breaking down the 2024 liabilities, current liabilities totaled $2,847,717, while long-term liabilities were $23,261,678. Current liabilities include items such as the line of credit ($100,008), installment notes payable ($766,667), accounts payable operating ($572,199), and operating lease liabilities ($928,298). Long-term liabilities consist primarily of installment notes payable ($11,265,209) and operating lease liabilities ($10,530,569).
For a prospective franchisee, understanding the liabilities of Gold Star is crucial as it provides insight into the financial stability and obligations of the company. A high level of liabilities compared to assets could indicate higher financial risk. However, it is also important to consider the nature of these liabilities. For instance, long-term liabilities related to operating leases may be manageable if the franchise locations are generating sufficient revenue. Franchisees should consult with a financial advisor to assess the implications of these liabilities on the overall health and stability of the Gold Star franchise system.