What was the total amount Gold Star spent on Salaries and Wages in 2023?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------|---------------------------| | Retained Earnings, December 31, 2022, As Restated | $ 1,312,822 |
NOTE 25 – SUBSEQUENT EVENT
The Company has evaluated subsequent events through April 8, 2025, which is the date the consolidated financial statements were available to be issued.
In February 2025, the Company entered into a 15-year lease for a building in Hamilton, Ohio. The lease has three 5-year renewal options with a purchase option in years 20 through 30 of the lease. The lease will commence 30 days from the Company's opening for business to the public, which is anticipated to be April 2025. The rent payments over the life of the lease will be $476,124.
GOLD STAR CHILI, INC. CONSOLIDATED STATEMENTS OF SELLING , GENERAL AND ADMINISTRATIVE EXPENSES
| -------------------------- | -- |
|---|
| 2022 | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | (Restated) | ||||
| Research and Development | $ 35,511 | $ | 37,484 | $ | 41,997 | |
| Salaries and Wages | 6,959,176 | 6,101,035 | 5,600,894 | |||
| 401(k) Expense | 64,584 | 73,246 | 65,823 | |||
| Advertising Expense | 886,959 | 921,454 | 996,584 | |||
| Depreciation and Amortization Expense | 1,312,395 | 1,000,384 | 876,592 | |||
| State and Local Taxes | 755,808 | 757,139 | 716,467 | |||
| Pa |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company's total expenditure on Salaries and Wages in 2023 was $6,101,035. This figure represents the direct costs associated with compensating employees, which is a significant operating expense for Gold Star.
For a prospective franchisee, understanding this figure is crucial as it provides insight into the labor costs at the corporate level. While a franchisee's labor costs will vary based on location, store size, and staffing model, this figure can serve as a benchmark for understanding the overall scale of employee compensation within the Gold Star system. It is important to note that this figure reflects the expenses of Gold Star Chili, Inc. and not the expenses of individual franchised locations.
Reviewing these figures over the three years presented (2022-2024) shows fluctuations in Salaries and Wages. A potential franchisee should inquire about the reasons for these changes, such as variations in staffing levels, wage adjustments, or changes in corporate structure. Understanding these factors can help a franchisee better anticipate and manage their own labor costs.
It is also important to consider how these costs relate to other expenses, such as advertising and rent, to get a comprehensive view of Gold Star's financial operations. This information, combined with the franchisee's own projections, can contribute to a more informed decision about investing in a Gold Star franchise.