What was the total property and equipment for Chili, Inc. after accumulated depreciation related to Gold Star?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
| Chili, Inc. | LLC | TCWW, LLC | Eliminations | Total | ||
|---|---|---|---|---|---|---|
| Current Assets | ||||||
| Cash | $ 437,267 | $ 909,375 | $ 244,320 | $ | - $ 1,590,962 | |
| Accounts Receivable, Less Allowance for | ||||||
| Expected Credit Losses of $896,732 | 905,238 | 2,002,485 | 4,130 | (1,981,263) | 930,590 | |
| Advance - Related Party | 3,441,832 | - | - | (3,441,832) | - | |
| Other Receivables | 21,704 | - | 1,502 | - | 23,206 | |
| Inventory | 980,151 | - | 27,923 | - | 1,008,074 | |
| Prepaid Expenses | 166,348 | 109,041 | 15,154 | (12,824) | 277,719 | |
| Total Current Assets | 5,952,540 | 3,020,901 | 293,029 | (5,435,919) | 3,830,551 | |
| Property and Equipment | ||||||
| Land | - | 7,004,518 | - | (164,029) | 6,840,489 | |
| Buildings | 4,127,417 | 10,257,116 | - | 817,551 | 15,202,084 | |
| Leasehold Improvements | 5,500,864 | - | 429,641 | - | 5,930,505 | |
| Furniture and Equipment | 5,913,212 | 184,794 | 535,932 | - | 6,633,938 | |
| Vehicles | 100,623 | - | - | - | 100,623 | |
| Construction in Progress | 489,000 | - | - | - | 489,000 | |
| 16,131,116 | 17,446,428 | 965,573 | 653,522 | 35,196,639 | ||
| Less Accumulated Depreciation | 9,164,879 | 6,837,663 | 291,152 | 727,229 | 17,020,923 | |
| Total Property and Equipment | 6,966,237 | 10,608,765 | 674,421 | (73,707) | 18,175,716 | |
| Fair Value of Interest Rate Swap | 194,930 | 113,503 | - | - | 308,433 | |
| Other Assets | ||||||
| Right of Use Asset - Operating Leases | 9,246,018 | - | 1,846,237 | - | 11,092,255 | |
| Goodwill, Net | 381,667 | - | 67,719 | - | 449,386 | |
| Trademark | - | - | 475,000 | - | 475,000 | |
| Intangibles Subject to Amortization | 48,595 | - | - | - | 48,595 | |
| Deposits | 154,174 | 5,763 | 11,706 | - | 171,643 | |
| Investment in Subsidiary | (2,164,835) | - | - 2,164,835 | - | ||
| Notes Receivable | 1,817,565 | - | - (1,817,565) | - | ||
| Total Other Assets | 9,483,184 | 5,763 | 2,400,662 | 347,270 | 12,236,879 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total property and equipment for Gold Star Chili, Inc., after deducting accumulated depreciation, is $6,966,237. This figure represents the net value of the company's physical assets, such as land, buildings, leasehold improvements, furniture, equipment, and vehicles, after accounting for the reduction in value due to wear and tear, obsolescence, or other factors. Accumulated depreciation reflects the total amount of depreciation expense that has been recognized over the asset's life.
For a prospective Gold Star franchisee, this information provides insight into the financial structure and asset management of the parent company. A significant investment in property and equipment suggests that Gold Star has a solid infrastructure to support its operations and franchise network. However, it's also important to consider the age and condition of these assets, as older assets may require more maintenance and eventual replacement. The accumulated depreciation of $9,164,879 for Gold Star Chili, Inc. indicates the total amount of depreciation recognized on these assets over time.
Understanding the breakdown of property and equipment can help a franchisee assess the long-term stability and capital expenditure requirements of Gold Star. For instance, a large investment in buildings and leasehold improvements might indicate a commitment to physical locations, while a focus on furniture and equipment could reflect the importance of operational efficiency. Reviewing these figures in comparison to previous years can also reveal trends in Gold Star's investment strategy and asset management practices. A prospective franchisee should further investigate the details of these assets and their depreciation schedules during their due diligence.
It is important to note that these figures represent the consolidated financial position of Gold Star Chili, Inc. and may not directly reflect the financial performance of individual franchise locations. However, they provide valuable context for evaluating the overall health and stability of the Gold Star franchise system. A potential franchisee should consult with a financial advisor to fully understand the implications of these figures and how they relate to their investment decision.