What was the total amount of prepaid expenses for Chili, Inc. related to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 8,872 | | 633 | | - | 65,683 |
| Interest Expense | | (533,986) | | (331,489) | | - | | 73,388 | (792,087) | | Loss From Investment in | | | | | | | | | | | Limited Liability Company | | (121,616) | | - | | - | | 121,616 | - | | Insurance Proceeds | - | | - | 150,000 | | | | | 150,000 | | Total Other Income (Expenses) | _ | 369,466 | | 1,984,684 | | 633 | | (358,012) | 1,996,771 | | Net Income (Loss) | | 1,231,482 | | 1,281,156 | | (121,616) | | 107,248 | 2,498,270 | | Other Comprehensive Gain | | | | | | | | | | | Change in Fair Value of Interest | | 62,320 | | 36,287 | | _ | | _ | 98,607 | | Rate Swap | | | | | | | | | | | Naic Owap | - | 02,020 | - | 30,207 | - | | • | | 30,007 | | Comprehensive Income (Loss) | $_ | 1,293,802 | $_ | 1,317,443 | $ | (121,616) | $ | 107,248 $ | 2,596,877 |
GOLD STAR CHILI, INC. CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2024
| Gold Star Chili, Inc. | GSC Properties, LLC | TCWW, LLC | Eliminations | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Cash Flows From Operating Activities | - | - | _ | ||||||
| Net Income (Loss) | $ | 1,231,482 | $ | 1,281,156 | $ | (121,616) $ | 107,248 $ | ; | 2,498,270 |
| Reconciliation of Net Income (Loss) with | Ψ | 1,201,102 | Ψ | 1,201,100 | Ψ | (121,010) $ | 107,210 ψ | 2, 100,210 | |
| Cash Flows From Operations | |||||||||
| Depreciation | 906,075 | 230,368 | 98,261 | 14,368 | 1,249,072 | ||||
| Amortization | 54,392 | - | 8,931 | - | 63,323 | ||||
| Amortization on Loan Cost | 8,565 | 4,927 | - | - | 13,492 | ||||
| Loss From Investment in Limited | |||||||||
| Liability Company | 121,616 | - | - | (121,616) | - | ||||
| Changes In | |||||||||
| Accounts Receivable, Net | 228,658 | 146,463 | 349 | (168,637) | 206,833 | ||||
| Other Receivables | (589) | - | - | - | (589) | ||||
| Inventory | 487,782 | - | (4,643) | - | 483,139 | ||||
| Prepaid Expenses | 253,658 | 30,514 | 2,611 | (14,319) | 272,464 | ||||
| Deposits | 143,766 | - | - | - | 143,766 | ||||
| Right of Use Asset - Operating Leases | 850,928 | - | 124,186 | - | 975,114 | ||||
| Operating Lease Liabilities | (753,870) | - | (36,876) | - | (790,746) | ||||
| Accounts Payable Operating | (970,695) | (9,217) | (21,615) | 246,396 | (755,131) | ||||
| Gift Card Liability | - | - | 6,158 | - | 6,158 | ||||
| Deferred Franchise Fees | (16,726) | - | (1,100) | - | (17,826) | ||||
| Accrued Wages and Other Liabilities | 274,301 | - | (12,775) | - | 261,526 | ||||
| Accrued Expenses and Other Liabilities | _ | (38,401) | - | (167,339) | (44) | (205,784) | |||
| Cash Provided by | |||||||||
| Operating Activities | _ | 2,780,942 | - | 1,516,872 | 41,827 | 63,440 | 4,403,081 | ||
| Cash Flows From Investing Activities | |||||||||
| Advances - Related Party | (201,560) | - | - | 201,560 | - | ||||
| Payments on Notes Receivable | 123,138 | - | - | (123,138) | - | ||||
| Acquisition of Property and Equipment | _ | (448,905) | _ | (823,599) | (193,068) | ( | (1,465,572) | ||
| Cash Used by | |||||||||
| Investing Activities | _ | (527,327) | _ | (823,599) | (193,068) | 78,422 | ( | (1,465,572) | |
| Cash Flows From Financing Acti |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the prepaid expenses for Gold Star Chili, Inc. were $253,658. Additionally, GSC Properties, LLC had prepaid expenses of $30,514, and TCWW, LLC had prepaid expenses of $2,611. After eliminations of $14,319, the total prepaid expenses amounted to $272,464.
Prepaid expenses represent payments made in advance for goods or services that will be received in the future. For a potential Gold Star franchisee, understanding these figures is crucial as it provides insight into the financial health and expense management practices of the company and its related entities. Monitoring prepaid expenses can help in assessing the efficiency of resource allocation and potential future cost obligations.
The breakdown of prepaid expenses across different entities (Gold Star Chili, Inc., GSC Properties, LLC, and TCWW, LLC) offers a more granular view of where these advance payments are being made. This level of detail can be useful for franchisees in benchmarking their own expense management against the company's practices. The eliminations likely refer to intercompany transactions that are removed during the consolidation of financial statements to avoid double-counting.
Overall, the prepaid expenses reflect Gold Star's operational activities and financial structure. Prospective franchisees should consider these figures in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial position and its approach to managing expenses. Consulting with a financial advisor to interpret these figures in the context of the entire FDD is advisable.