What is the total future minimum base rental revenue for Gold Star's leases 'Thereafter'?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Years Ended December 31, | | | | | er 31, | |--------------------------|--------------------------|-----------|----|-----------|----|-----------| | | _ | 2024 | | 2023 | | 2022 | | Lease Expense | - | | | | | | | Operating Lease Expense | $ | 1,404,479 | $ | 1,182,719 | $ | 848,784 | | Short-term Lease Expense | | 196,727 | | 629,961 | | 348,792 | | CAM | _ _ | 29,285 | | 51,275 | _ | 42,732 | | Total | $_ | 1,630,491 | $ | 1,863,955 | $ | 1,240,308 | The following summarizes the cash flow information, weighted average lease term, and discount rate related to operating leases:
Other Information
| Operating Cash Flows from Operat
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total future minimum base rental revenue on the leases classified as 'Thereafter' is $10,086,061. This figure represents the cumulative rental income Gold Star expects to receive from its lessees beyond the years specifically listed (2025-2029). These leases, which are classified as operating leases, expire at various times through February 2038.
For a prospective Gold Star franchisee, understanding the company's leasing revenue can provide insight into the financial stability of the company. The future minimum base rental revenue indicates the guaranteed income Gold Star anticipates from its leasing activities. This revenue can offset the company's own lease obligations and contribute to its overall profitability.
It's important to note that this figure represents the minimum base rental revenue. Actual rental revenue could be higher if, for example, Gold Star negotiates higher rents upon renewal or enters into new lease agreements. The FDD also mentions that the company has signed twenty-four operating leases for buildings, equipment and furniture, and land, which expire on various dates through September 2048. Additionally, Gold Star has various operating leases that are month-to-month or expire in twelve months or less and are not included on the consolidated balance sheets as of December 31, 2024, 2023, and 2022. These leases are subject to certain renewal and/or termination options, all of which were not included in the lease liabilities due to the options not being reasonably certain to be exercised.
Prospective franchisees should consider this leasing revenue as part of their due diligence, assessing how it contributes to Gold Star's financial health and its ability to support its franchisees. Understanding the terms and conditions of these leases, including renewal options and potential risks, is crucial for making an informed investment decision.