How much cash did Beef O Bradys pay for interest during 2023?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Term loan | $ 25,819,602 | $ 27,913,083 |
| Less: current maturities | (2,093,481) | (2,093,481) |
| Less: unamortized debt issuance costs | (549,011) | (689,181) |
| Total | $ 23,177,110 | $ 25,130,421 |
Future maturities of the note payable to bank are as follows:
| Year | Amou
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the interest expense on notes payable to the bank totaled $1,836,607 for the year ended December 31, 2023. This figure represents the amount of interest Beef O Bradys paid on its outstanding loans from the bank during that year.
For a prospective franchisee, this indicates the level of debt Beef O Bradys carries and its associated interest obligations. While this is not directly the franchisee's debt, it provides insight into the financial management and obligations of the franchisor. A high interest expense could suggest a significant debt burden, which might impact the franchisor's ability to support its franchisees or invest in the brand.
It is important to note that this interest expense is related to notes payable to the bank and does not include any interest paid to other lenders or related parties. The FDD also mentions related party transactions that are non-interest bearing and due on demand, indicating that Beef O Bradys has financial dealings with related entities that do not incur interest expenses. Franchisees should consider this information in the context of the overall financial health of Beef O Bradys.