What was the total amount Gold Star spent on Salaries and Wages in 2024?
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 expenditure on Salaries and Wages for the year 2024 amounted to $6,959,176. This figure is part of the company's consolidating statement of income and comprehensive income, reflecting the total compensation paid to employees during that fiscal year. Franchisees should consider this a corporate expense and not directly indicative of the labor costs they will incur at their individual franchise locations. However, understanding the franchisor's overhead can provide insight into the overall financial health and stability of the Gold Star organization.
When evaluating this figure, prospective franchisees should consider several factors. First, it is essential to understand the scope of services and support that Gold Star provides to its franchisees. A higher expenditure on salaries and wages might indicate a larger support staff, potentially leading to better training, marketing assistance, and operational guidance for franchisees. Conversely, a lower figure might suggest a leaner corporate structure, which could impact the level of support available.
Additionally, it is important to compare this figure with previous years to identify any trends. For instance, the FDD indicates that Salaries and Wages were $6,101,035 in 2023 and $5,600,894 in 2022. The increase in 2024 could be due to various factors, such as expansion, increased staffing levels, or wage adjustments. Understanding the reasons behind these changes can help franchisees assess the company's growth trajectory and its commitment to supporting its operations.
Finally, prospective franchisees should inquire about the specific roles and responsibilities of the employees included in this figure. This information can provide a better understanding of how Gold Star allocates its resources and the types of expertise it has available to support its franchisees. It is also advisable to compare this figure with industry benchmarks to assess whether Gold Star's expenditure on salaries and wages is competitive and aligned with industry standards.