When does the Card My Yard financing arrangement with Deerpath Fund Services, LLC mature?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
and 2023, respectively.
The future aggregate amounts of amortization expense to be recognized related to definite-lived intangible assets as of December 31, 2024, are asfollows:
| 2026 11,668,434 2027 11,668,434 2028 11,668,434 2029 11,668,434 | 2025 | $ 11,668,434 |
|---|---|---|
| Thereafter | 39,893,136 |
4. Long-Term Debt and Revolving Credit Facility
In connection with the acquisitions ofsubsidiary companies in prior years, the Company entered into a financing arrangement with DeerpathFund Services, LLC (Deerpath) that matures onSeptember 3, 2026. Under the financing arrangement,the Company received an initial term loan with a principal amount of $28,000,000, to be used for acquisitions which occurred in 2021, as well as amounts available for future transactions as follows: (1) up to an aggregate of $15,000,0
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the company has a financing arrangement with Deerpath Fund Services, LLC that matures on September 3, 2026. This arrangement originated in connection with the acquisitions of subsidiary companies in prior years.
Under this financing arrangement, Card My Yard received an initial term loan of $28,000,000, which was used for acquisitions that occurred in 2021. Additionally, the company has access to further funds, including up to $15,000,000 in delayed draw term loans and contingent amounts of up to $25,000,000 for future financing, subject to negotiation. The loans bear an interest rate of a 3-month term SOFR plus 5.65%, which was 10.24% as of December 31, 2024.
As of December 31, 2024, the total amount drawn on this facility was $48,100,000. The arrangement also includes a revolving credit facility with available draws up to $2,000,000, of which Card My Yard had drawn $1,100,000 as of the same date. This debt structure is relevant for prospective franchisees to understand the financial obligations and leverage of the parent company, as it could impact the franchisor's ability to support and grow the franchise system.