What is the trend in amortization of deferred financing fees for Brueggers Bagels from 2022 to 2024?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
--------|-----------|---------|---------|------------|--------------| | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | | $ 2,463 | $ 5,223 | $ 71,811 | $ - | $ - | $ - | $ 79,497 |
In connection with the acquisition of the PBI Credit Facility and Intercompany Loan Agreement, the Company paid debt acquisition costs of $2.3 million during the fiscal year ended December 27, 2022. These costs have been capitalized as deferred financing fees. Deferred financing fees on the consolidated balance sheets as of December 31, 2024 and December 26, 2023 totaled approximately $1.1 million and $1.7 million, respectively. Amortization expense of deferred financing fees, including write-offs of debt acquisition costs associat
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the amortization expense of deferred financing fees has fluctuated between 2022 and 2024. In 2022, the amortization expense, including write-offs of debt acquisition costs associated with the Bank Agreement, totaled $1.6 million. This decreased to $0.7 million for the fiscal year ended December 26, 2023. By the fiscal year ended December 31, 2024, the amortization expense further decreased to $0.6 million.
These deferred financing fees stem from debt acquisition costs of $2.3 million paid during the fiscal year ended December 27, 2022, in connection with the acquisition of the PBI Credit Facility and Intercompany Loan Agreement. These costs were capitalized as deferred financing fees, which are reflected on the consolidated balance sheets. As of December 31, 2024, the deferred financing fees totaled approximately $1.1 million, compared to $1.7 million as of December 26, 2023.
For a prospective Brueggers Bagels franchisee, understanding the amortization of deferred financing fees provides insight into how the company manages its debt and related expenses. The decrease in amortization expense from 2022 to 2024 could indicate changes in the company's debt structure or financing activities. It's important to note that these figures reflect the company's overall financial activities and may not directly impact the day-to-day operations of a franchise. However, they contribute to the overall financial health and stability of Brueggers Bagels, which can indirectly affect franchisees.