What were the principal payments on long-term debt for Caring Senior Service in 2022?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
usiness. In the opinion of management, there is no such litigation for the Partnership at this time.
7. Long-Term Debt
The Partnership purchased a vehicle for business use by Caring Senior Service on August 12, 2019. The vehicle was purchased through a loan from Security Services Federal Credit Union for $48,223. Terms include 72 payments due monthly in the amount of $769, which inclu
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 FDD, Caring Senior Service had a vehicle loan with Security Services Federal Credit Union. The original loan amount was $48,223, taken out on August 12, 2019, with monthly payments of $769 including interest at 4.60%. The balance due on this loan as of December 31, 2022, was $23,083.
The FDD does not explicitly state the principal payments made in 2022. It only provides the loan balance as of December 31, 2022. To determine the principal payments, one would need to calculate the difference between the loan balance at the beginning of 2022 and the loan balance at the end of 2022, while also accounting for any new debt incurred during that year.
For a prospective franchisee, understanding the debt obligations of Caring Senior Service is crucial for assessing the financial health of the company. While the FDD provides year-end balances, it lacks the detailed breakdown of principal and interest payments necessary for a comprehensive financial analysis. A potential franchisee should request more detailed financial statements from Caring Senior Service, including a breakdown of debt payments, to fully understand the company's financial obligations and cash flow.