What is the total amount of remaining maturities on the notes payable for Gold Star as of the date of this FDD?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
4, 2023, and 2022, respectively. The line matures in August 2025 and is subject to certain financial covenants, all of which were either waived or met at December 31, 2024.
The Company has another draw line of credit with the same bank. This line of credit is specific to capital expenditures and is collateralized by a blanket lien on all of the Company's general business assets and charges interest at the Term Secured Overnight Financing Rate (SOFR) plus 2.35% (the Term SOFR was 4.49% at December 31, 2024). The amount utilized was $1,500,000, $802,996, and $-0- at December 31, 2024, 2023, and 2022, respectively. Principal payments of $8,334 are due monthly beginning in January 2025 with a balloon payment due upon maturity in August 2028. The line of credit is subject to certain financial covenants, all of which were either waived or met at December 31, 2024.
NOTE 11 – NOTE PAYABLE
The Company had seven notes that were all consolidated into one note payable in 2020 with a bank that has a balloon payment due in March 2027. In August 2023, the note was refinanced and extended to August 2028. The note bears interest at Term Secured Overnight Financing Rate (SOFR) plus 2.35% (the Term SOFR was 4.49% at December 31, 2024). The note payable is subject to certain financial covenants, all of which were met or waived at December 31, 2024. The note is collateralized by property and, where applicable, an assignment of rents.
The remaining maturities on these notes are as follows:
| 2025 | $ | 766,667 |
|---|---|---|
| 2026 | 816,667 | |
| 2027 | 866,667 | |
| 2028 | _ _ | 9,658,333 |
| $_ | 12,108,334 |
NOTE 12 – FRANCHISE REVENUE
Continuing franchise fees (royalties) are reflected in net sales and amounted to $2,612,040, $2,703,632, and $2,690,769 in 2024, 2023, and 2022, respectively.
NOTE 13 – REVENUE SHARING AGREEMENT
In April 2023, the Company entered into a revenue sharing agreement for a Tom + Chee restaurant at Kings Island. The Company is responsible for staffing and operating the location during the year. The agreement terminates in January 2026. Total revenue included in sales on the statements of income and comprehensive income for the years ended December 31, 2024 and 2023 were $694,760 and $652,848, respectively.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company had refinanced its notes payable with a balloon payment due in August 2028. The note bears interest at Term Secured Overnight Financing Rate (SOFR) plus 2.35%, with the Term SOFR being 4.49% as of December 31, 2024. The note payable is subject to certain financial covenants, all of which were met or waived at December 31, 2024. The note is collateralized by property and, where applicable, an assignment of rents.
The remaining maturities on these notes are not explicitly detailed in a year-by-year breakdown within the provided documentation. Instead, the document provides a consolidated balance sheet detailing the installment note payable amounts for both current and long-term liabilities.
As of December 31, 2024, the current portion of the installment note payable is $766,667, and the long-term portion is $11,265,209. This results in a total installment note payable of $12,031,876. Prospective franchisees should request a detailed breakdown of the remaining maturities on the notes payable from Gold Star to fully understand the debt obligations and their repayment schedule.