What was the carrying amount of Aplus' consolidated debt obligations as of December 31, 2022?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
at 11.865%. As of December 31, 2023 and 2022, the balance of the sale leaseback financing obligation was $85 million.
Lease-related financing obligations also include finance lease obligations of $9 million as of December 31, 2023 and 2022, as further discussed in Note 13.
Fair Value of Debt
The aggregate estimated
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, as of December 31, 2022, the aggregate carrying amount of Aplus's consolidated debt obligations was $3.6 billion. The aggregate estimated fair value of their consolidated debt obligations as of that date was $3.4 billion.
This information is relevant for prospective franchisees as it provides insight into the financial health and leverage of Aplus. A high level of debt could indicate higher financial risk, while the difference between fair value and carrying amount might reflect market perceptions of that debt.
It's important for potential franchisees to consider Aplus's debt obligations in the context of its overall financial performance and stability. Understanding the company's debt structure can help franchisees assess the potential risks and opportunities associated with investing in an Aplus franchise.