What was the total interest expense for Carls in the Series 2020-1 Class A-2 Notes?

According to Carls's 2024 Franchise Disclosure Document, the interest expense for the Series 2020-1 Class A-2 Notes was $15,466 in one period and $15,643 in another period. These figures reflect the interest Carls paid on these specific notes during those periods.

For a prospective franchisee, understanding these interest expenses is crucial as it provides insight into the financial obligations and debt management of Carls. While franchisees are not directly responsible for these debts, the financial health of the parent company can impact the support and resources available to franchisees.

The Series 2020-1 Class A-2 Notes were issued on December 21, 2020, with an aggregate principal amount of $400,000 and a fixed interest rate of 3.981%. These notes were used to pay down the Series 2018-1 Class A-2-I Notes. The Series 2020-1 Class A-2 Notes require quarterly principal payments of $1,000 beginning March 22, 2021, with interest payments due quarterly in arrears on the 20th day of March, June, September, and December. The anticipated repayment date for these notes is December 2027, and the legal final maturity date is December 2050.

It is important for potential franchisees to consider the overall financial structure of Carls, including its debt obligations, as it can influence the long-term stability and growth potential of the franchise system. Reviewing the financial statements and understanding the terms of the senior notes can provide a more comprehensive view of the company's financial health.