What was the total reported amount for Gold Star current liabilities for 2024?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
solidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.
Prior Period Financial Statements
Dean Dotton allen Ford, PUC
The financial statements as of December 31, 2022, were audited by VonLehman & Company Inc., who merged with Dean Dorton Allen Ford, PLLC as of January 1, 2024.
Fort Wright, Kentucky
April 8, 2025
GOLD STAR CHILI, INC. CONSOLIDATED BALANCE SHEETS
ASSETS
| $ | | | | $ | |---|---|---|---|---| | | - | - | - | |
GOLD STAR CHILI, INC. CONSOLIDATED BALANCE SHEETS (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
| | | Dece
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total current liabilities for the company in 2024 were $2,847,717. This figure represents the sum of several short-term financial obligations, including a line of credit, installment notes payable, accounts payable, operating lease liabilities, gift card liability, accrued wages and related liabilities, accrued expenses and other liabilities, and deferred franchise fees. These are the debts and obligations Gold Star is expected to settle within one year.
Understanding the composition of current liabilities is crucial for prospective franchisees. For instance, a significant portion of these liabilities consists of operating lease liabilities ($928,298) and installment notes payable ($766,667), indicating substantial lease commitments and debt obligations. Accounts payable operating ($572,199) also contribute a notable amount, reflecting the company's obligations to its suppliers and vendors. Monitoring these liabilities helps assess Gold Star's short-term financial health and its ability to meet its immediate obligations.
Furthermore, the FDD provides a breakdown of these liabilities, offering insights into the specific areas where Gold Star has financial obligations. Accrued wages and related liabilities ($380,675) represent employee-related expenses, while gift card liability ($70,167) indicates the value of outstanding gift cards. Deferred franchise fees ($15,875) are revenues that Gold Star has received but not yet earned. Analyzing these components provides a comprehensive view of Gold Star's financial obligations and their potential impact on its financial stability.
For a prospective franchisee, this information is valuable in assessing the financial stability of Gold Star. Comparing these figures with previous years (2022 and 2023) can reveal trends and potential areas of concern. A significant increase in current liabilities may indicate financial strain, while a decrease could suggest improved financial management. Therefore, carefully reviewing these liabilities and understanding their implications is essential for making an informed investment decision.