What was the total lease expense for Gold Star for the year ended December 31, 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
espectively.
NOTE 14 - LEASES
The Company has signed twenty-four operating leases for which right of use assets were recorded on the consolidated balance sheets of the Company. As of December 31, 2024, 2023, and 2022, six leases are for buildings, nine leases are for equipment and furniture, and nine leases are for land. These leases expire on various dates through September 2048. In addition, the Company also has various operating leases that are
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 lease expense for the year ending December 31, 2024, was $1,630,491. This total is comprised of several components.
The operating lease expense was $1,404,479, representing the cost for the use of leased assets over the lease term. The short-term lease expense, covering leases with a term of 12 months or less, amounted to $196,727. Additionally, Gold Star incurred $29,285 in CAM (Common Area Maintenance) fees, which are expenses related to maintaining shared areas in leased properties.
It's important to note that these figures reflect Gold Star's lease expenses as a company, not the expenses a franchisee would incur. A franchisee's lease expenses will depend on the specific location and terms of their franchise agreement. Prospective franchisees should carefully consider these potential costs when evaluating the financial feasibility of opening a Gold Star franchise.