For Carvel, what was the net interest expense for the fiscal year ended December 29, 2024?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Senior Notes, subject to certain financial conditions set forth in the Indenture, are as follows:
| 2025 | $ 11,200 |
|---|---|
| 2026 | 11,200 |
| 2027 | 517,200 |
| 2028 | 145,200 |
| 2029 | 336,463 |
| Thereafter | 344,350 |
| Total | 1,365,613 |
| Less: Debt discount and issuance costs | (18,571) |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the net interest expense for the fiscal year ended December 29, 2024, was $90,706. This figure represents the cost of Carvel's borrowing, taking into account interest income. For comparison, the net interest expense for the previous fiscal year, which ended December 31, 2023, was $74,911.
It's important to note that this net interest expense reflects Carvel's overall borrowing costs and may not directly translate to the financing terms a new franchisee might encounter. Franchisees typically secure their own financing for startup costs, and their interest rates will depend on their creditworthiness and prevailing market conditions.
Prospective Carvel franchisees should consider this figure as part of their broader due diligence, understanding that it reflects the franchisor's financial obligations. While it doesn't directly dictate a franchisee's financing, it provides insight into Carvel's financial management and debt obligations. Franchisees should consult with financial advisors to understand the implications of interest rates and debt financing for their own businesses.