What was the total Rental Expense for Gold Star in 2023?
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 rental expense in 2023 was $1,863,955. This figure is the sum of several components, including operating lease expense, short-term lease expense, and CAM (common area maintenance) costs. Understanding these individual components can provide a more detailed picture of Gold Star's leasing obligations.
The operating lease expense for Gold Star in 2023 was $1,182,719, representing the cost associated with longer-term leases that are accounted for on the company's balance sheet. Short-term lease expense, covering leases with a term of 12 months or less, amounted to $629,961 in 2023. CAM costs, which cover the expenses of maintaining common areas in leased properties, totaled $51,275 for the same year.
For a prospective Gold Star franchisee, these figures highlight the significant costs associated with leasing restaurant locations. It's important to note that these expenses reflect Gold Star's corporate operations and may not directly translate to the costs a franchisee would incur. However, understanding the different types of lease expenses and their relative magnitudes can help franchisees better anticipate and manage their own rental obligations. Franchisees should carefully review their lease agreements and factor in all associated costs, including rent, CAM charges, and any other applicable fees, when evaluating the financial viability of a location.