During which years of the lease does Gold Star have the option to purchase the building in Hamilton, Ohio?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------------------|-----|-----------------------------------| | Balance at December 31, 2022 | $ 10,100,737 | $_ | 10,193,756 | | Correction of Value | (305,426) | | (305,426) | | December 31, 2022, As Restated | $ 9,795,311 | $_ | 9,888,330 |
The previously issued consolidated financial statements for the year ended December 31, 2023 were restated to correct an accrual made f
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the company entered into a 15-year lease for a building in Hamilton, Ohio, in February 2025. The lease includes three 5-year renewal options. Gold Star has the option to purchase the building during years 20 through 30 of the lease. The lease commencement is set for 30 days after Gold Star opens for business to the public, which is anticipated to be in April 2025. The total rent payments over the lease's duration are projected to be $476,124.
For a prospective franchisee, this information is relevant if they are considering a location in Hamilton, Ohio, or if they want to understand the terms Gold Star negotiates for its own properties. The purchase option in years 20-30 provides Gold Star with potential long-term flexibility and control over the real estate, which could be advantageous.
However, it's important to note that this lease is for a building the company itself is leasing, not necessarily a location a franchisee would operate. Franchisees typically enter into their own lease agreements, and the terms can vary significantly. Understanding the terms Gold Star secures can provide a benchmark, but individual franchisees should still carefully review and negotiate their own lease agreements. The $476,124 in rent payments over the life of the lease gives a sense of the scale of these obligations.