What is the projected long-term debt for Carvel, according to the provided table?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
1,748 and $1,143 in 2024 and 2023, respectively | | 44,272 | 37,049 | | Inventories | | 1,128 | 978 | | Prepaid expenses and other current assets | | 12,118 | 9,263 | | Advertising funds assets | | 9,927 | 7,643 | | Intercompany receivables from Parent | | 3,277 | 3,277 | | Total current assets | | 115,063 | 110,454 | | Property, equipment, leasehold improvements and land, net | | 71,417 | 71,199 | | Operating lease assets, net | | 62,676 | 69,535 | | Goodwill | | 122,714 | 122,714 | | Intangible assets, net | | 496,479 | 495,389 | | Long-term other assets | | 13,986 | 13,305 | | Total assets | $ | 882,335 | $ 882,596 |
Consolidated balance sheets (cont'd)
| December 29, 2024 | December 31, 2023 | |
|---|---|---|
| Liabilities and Member's Deficit | ||
| Current liabilities: | ||
| Accounts payable | $ 5,320 | $ 8,395 |
| Accrued expenses and other liabilities | 81,587 | 75,840 |
| Income taxes payable | 3,851 | 7,620 |
| Advertising funds liabilities | 8,418 | 8,942 |
| Current portion of deferred revenue | 3,688 | 3,149 |
| Current portion of operating lease liabilities | 11,146 | 12,309 |
| Current portion of long-term debt | 11,200 | 9,950 |
| Total current liabilities | 125,210 | 126,205 |
| Long-term debt | 1,335,842 | 1,258,205 |
| Long-term operating lease liabilities | 56,952 | 63,276 |
| Long-term deferred tax liabilities | 64,182 | 74,271 |
| Long-term deferred revenue | 58,571 | 55,362 |
| Long-term other liabilities | 1,452 | 1,458 |
| Total liabilities | 1,642,209 | 1,578,777 |
| Commitments and contingencies (see Note 11) | ||
| Member's deficit: | ||
| Member's deficit |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the company's long-term debt was $1,335,842 as of December 29, 2024, and $1,258,205 as of December 31, 2023. This figure represents the amount of debt Carvel owes beyond the next 12 months. It's a crucial indicator of the company's financial leverage and stability. A prospective franchisee should consider how Carvel manages its debt, as it can impact the franchisor's ability to support its franchisees.
The FDD also outlines the future principal payments on this long-term debt. The schedule shows payments of $11,200 in 2025, $11,200 in 2026, $517,200 in 2027, $145,200 in 2028, $336,463 in 2029, and $344,350 thereafter, totaling $1,365,613. After accounting for debt discount and issuance costs of $18,571 and subtracting the current portion of $11,200, the long-term debt is reported as $1,335,842.
Understanding the repayment schedule is important for potential franchisees because it provides insight into Carvel's financial obligations and how those obligations might affect the resources available to support the franchise system. High debt levels and near-term repayment obligations could indicate potential financial strain, which might translate to reduced support for franchisees or increased financial risk for the overall Carvel organization. Therefore, a careful review of these figures is essential for any prospective franchisee.