What is the total amount of future maturities of notes payable for Card My Yard in 2026?
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 $15,000,000 available as delayed draw term loans, and (2) contingent amounts of up to $25,000,000
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 had a financing arrangement with Deerpath Fund Services, LLC that matures on September 3, 2026. The initial term loan was for a principal amount of $28,000,000, and the total amount drawn on the facility as of December 31, 2024, was $48,100,000. Additionally, there was a revolving credit facility with available draws up to $2,000,000, of which $1,100,000 had been drawn as of the same date.
As of December 31, 2024, Card My Yard had future maturities of notes payable. Since the financing arrangement with Deerpath matures on September 3, 2026, a prospective franchisee should be aware that this debt will need to be addressed by Card My Yard. This could impact the financial stability of the company and, consequently, the support and resources available to franchisees.
It is important for potential franchisees to further investigate Card My Yard's long-term debt and revolving credit facility. Understanding the terms of the financing arrangement, including interest rates and repayment schedules, can provide insight into the company's financial obligations and potential risks. Prospective franchisees should also inquire about Card My Yard's plans for managing this debt as it matures in 2026 and how it might affect the franchise system.