What was the amount of long-term debt, less current installments, for Boulder Designs in 2023?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
greements in the amount of $563,824 and $576,824, respectively, consist of franchise rights previously sold by the Company that were repurchased due to various circumstances with the intent to resale. An impairment loss of $28,000, $30,000, and $30,000 was charged to operations during 2024, 2023, and 2022, respectively.
(4) Notes Payable
Notes payable at December 31, 2024 and 2023 includes three notes payable on demand with an aggregate balance of $248,000 and $255,000, respectively. One note bears interest at a rate of 4% and the other two notes do not have a stated interest rate.
(5) Long-Term Debt
Long-term debt at December 31, 2024 and 2023 consists of the following:
| 2024 | 2023 | ||
|---|---|---|---|
| Note payable to a finance company that matures in | |||
| July 2025 with no stated interest rate and monthly | _ | ||
| payments of $1,399; secured by |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the company's long-term debt, less current installments, was $528,240 in 2023. This figure represents the amount of long-term debt Boulder Designs had outstanding after subtracting the portion of that debt due within the next year.
For a prospective franchisee, this information provides insight into the financial obligations of the franchisor. A substantial amount of long-term debt could indicate that Boulder Designs has taken on significant liabilities to finance its operations or expansion. While debt isn't inherently negative, it's important to assess whether the company is managing its debt responsibly and has a clear plan for repayment.
It's also worth noting the components of Boulder Designs' long-term debt. The FDD indicates that the debt includes notes payable to a finance company and the Small Business Administration, as well as notes related to the acquisition of franchise rights. Understanding the nature of this debt can give a franchisee a clearer picture of the company's financial structure and obligations. Reviewing the trend in long-term debt over the past few years, as presented in the financial statements, can further illuminate the company's financial management practices.