What is the total amount of long-term liabilities for Gold Star, as of the date of this financial statement?
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 | _ | _ | _ | 1,000 |
| Paid-In Capital | 212,680 | _ | _ | _ | 212,680 |
| Retained Earnings |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total long-term liabilities as of December 31, 2024, were $23,261,678. This figure is derived from the consolidating balance sheet, which breaks down the liabilities of Gold Star Chili, Inc. and its related entities. The long-term liabilities include items such as the line of credit, installment notes payable, operating lease liabilities, advances from related parties, and deferred franchise fees, less the current portions of these liabilities.
Specifically, the long-term liabilities consist of a line of credit amounting to $1,399,992, installment notes payable totaling $11,265,209, operating lease liabilities of $10,530,569, advances from related parties which net to zero due to eliminations, and deferred franchise fees of $65,908. These figures reflect the financial obligations of Gold Star that are not expected to be settled within the next year.
For a prospective franchisee, understanding the long-term liabilities of the franchisor is crucial as it provides insight into the financial stability and leverage of the company. A high level of long-term debt could indicate potential financial strain, which might affect the franchisor's ability to support its franchisees. Conversely, a manageable level of long-term liabilities suggests a stable financial structure. Reviewing these figures in comparison to previous years and industry benchmarks can offer a more comprehensive understanding of Gold Star's financial health.