What was the interest rate on the 1 800 Packouts' loans with Deerpath as of December 31, 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ise agreements | 30,900,000 | 30,900,000 | | | Goodwill | 80,483,637 | 87,128,812 | | | Total intangible assets | 138,933,637 | 145,578,812 | | | Less: accumulated amortization | (40,698,331) | (29,035,560) | | | Intangible assets, net | $ 98,235,306 | $ 116,543,252 |
Amortization expense resulting from goodwill and intangible assets was $11,662,770 and $12,639,099 for the years ended December 31, 2024 and 2023, respectively.
The future aggregate amounts of amortization expense to be recognized related to definite-lived intangible assets as of December 31, 2024, are asfollows:
| $ 11,668,434 11,668,434 11,668,434 11,668,434 11,668,434 |
|---|
| 39,893,136 |
| 98,235,306 |
| $ |
4. Long-Term Debt and Revolving Credit Facility
In connection with the acquisitions of subsidiary companies in prior years, the Company entered into a financing arrangement with Deerpath Fund Services, LLC (Deerpath
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts had a financing arrangement with Deerpath Fund Services, LLC. The loans under this arrangement bore an interest rate of a 3-month term SOFR plus 5.65%. As of December 31, 2024, this interest rate totaled 10.24%.
This information is relevant to a prospective franchisee because it provides insight into the financial obligations and debt management of 1 800 Packouts. Understanding the interest rates on the company's loans can help potential franchisees assess the financial stability and risk associated with investing in the franchise.
It's important to note that the interest rate is variable, being based on the 3-month term SOFR plus a fixed percentage. Therefore, the actual interest rate could fluctuate over time, impacting the overall cost of borrowing for 1 800 Packouts. A franchisee should consider how changes to these rates could affect the financial health of the company.