What was the amount of amortization of deferred financing costs for Carls in fiscal year 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
an anticipated repayment date of March 2031 and a legal final maturity date of March 2054. The Series 2024-1 Class A-2 Term Notes require scheduled quarterly principal payments of $875 with the first principal payment due June 20, 2024. The interest payments for the Series 2024-1 Class A-2 Term Notes are due quarterly in arrears on the 20th day of each March, June, September and December. A portion of the proceeds of the issuance of the Series 2024-1 Class A-2 Term Notes were used to repay the Series 2018-1 Class A-2-II Term Notes in full, including accrued interest.
Interest Expense
Interes
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the amortization of deferred financing costs for the fiscal year 2023 was $3,352. These costs are associated with the expenses Carls incurred when obtaining financing, which are then amortized over the life of the related debt. This figure is part of the overall interest expense reported by Carls.
For a prospective Carls franchisee, understanding the amortization of deferred financing costs provides insight into the financial management and capital structure of the company. It reflects how Carls manages its debt and distributes the costs of financing over time. This can be an indicator of the company's financial strategy and its approach to managing long-term liabilities.
It's important to note that these costs relate to debt issuance and amendments, such as the Series 2021-1 Class A-2-I Notes and the 2018-1 Variable Funding Notes. The amortization of these costs is a non-cash expense that affects the company's net income. Reviewing these figures in the context of Carls's overall financial statements can help potential franchisees assess the financial health and stability of the company.