What was the total reported amount for liabilities for Gold Star as of 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
| December 31, | |||
|---|---|---|---|
| 2022 | |||
| 2024 | 2023 | (Restated) | |
| Current Liabilities | |||
| Line of Credit | 100,008 | 92,581 | 1,681,630 |
| $ | $ | $ | |
| Installment Note Payable | 766,667 | 716,667 | 853,334 |
| Bank Overdraft | - | - | 432,410 |
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the total liabilities reported for the company as of December 31, 2024, were $26,109,395. This figure represents the sum of all current and long-term liabilities that Gold Star had on its books at that time.
Specifically, the current liabilities, which are obligations due within one year, totaled $2,847,717. These included items such as the 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. The long-term liabilities, those due beyond one year, amounted to $23,261,678, consisting primarily of the line of credit, installment notes payable, operating lease liabilities, and deferred franchise fees.
For a prospective franchisee, this liabilities figure is important because it provides insight into Gold Star's financial leverage and overall financial health. A high level of liabilities relative to assets could indicate higher financial risk. However, it is essential to consider the nature of the liabilities and the company's ability to manage and meet these obligations. Reviewing trends in liabilities over time, as well as comparing these figures to industry benchmarks, can provide a more comprehensive understanding of Gold Star's financial position.