What was the total amount of long-term debt for Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
rust, a related party, interest only from | | | | 7.00%-8.00%, due through June 2027, collateralized by the Company's | | | | assets. | 950,000 | 744,130 |
Notes to Consolidated Financial Statements
| Note payable to John Fogarty Living Trust, interest only payable monthly at 7.00%, due in July 1, 2028, collateralized by the Company's assets, guaranteed by certain stockholders. | 1,000,000 | 1,000,000 |
|---|---|---|
| Notes payable to stockholders, interest only payable monthly ranging | 953,827 | 953,827 |
| from 7.00% to 10%, due through January 2026, collateralized by the | ||
| Company's assets. | ||
| Note payable to Zeus Holdings, LLC, interest only payable monthly at | 285,000 | 285,000 |
| 7.00% due in December 2025, collateralized by the assets of Capriotti's | ||
| Silverado, LLC(C) | ||
| Note payable to Harry Grabarek, interest only payable monthly at 7.00% | - | 200,000 |
| due in June 2023, collateralized by the Company's assets, guaranteed | ||
| by a stockholder. | ||
| Note payable to Morris Family Trust, a related party, payable in monthly | 147,574 | 154,618 |
| installments of $1,551, including interest at 7.00%, due May 1, 2025, | ||
| collateralized by the Company's assets. | ||
| Economic Injury Disaster Loan (EIDL) to U.S. Small Business Association, | 300,000 | 300,000 |
| payable in monthly installments of $731, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, a detailed breakdown of the company's notes payable is provided. As of the balance sheet date, the notes payable to John Fogarty Living Trust amounted to $1,000,000, bearing a 7.00% interest rate with interest-only payments due monthly and a final due date of July 1, 2028. This note is collateralized by the company's assets and guaranteed by certain stockholders. Notes payable to stockholders totaled $953,827, with interest rates ranging from 7.00% to 10%, interest-only payments due monthly, and maturity through January 2026. These notes are also collateralized by the company's assets. A note payable to Zeus Holdings, LLC, amounted to $285,000, with a 7.00% interest rate, interest-only payments due monthly, and a due date in December 2025, collateralized by the assets of Capriotti's Silverado, LLC. A note payable to Morris Family Trust, a related party, totaled $147,574, payable in monthly installments of $1,551, including interest at 7.00%, due May 1, 2025, and collateralized by the company's assets. The Economic Injury Disaster Loan (EIDL) to the U.S. Small Business Association amounted to $300,000, payable in monthly installments of $731, including interest at 3.75%, due through June 2050, and collateralized by the company's assets. Finally, notes payable to stockholders totaled $2,500,000.
These figures provide a snapshot of Capriottis Sandwich Shop's debt obligations, which are crucial for prospective franchisees to understand. The variety of lenders, interest rates, due dates, and collateral arrangements indicate the complexity of the company's financial structure. The presence of related-party transactions, such as the note payable to Morris Family Trust, is also noteworthy and something a franchisee should investigate further.
Understanding the long-term debt of Capriottis Sandwich Shop is essential for potential franchisees as it reflects the financial health and stability of the franchisor. High debt levels can indicate financial strain, which may impact the franchisor's ability to support its franchisees. Conversely, manageable debt with clear repayment terms can signal responsible financial management. Reviewing these notes payable in detail, along with the company's overall financial statements, is a critical step in the due diligence process for any prospective franchisee.