What was the effective interest rate as of December 30, 2024 for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| interest in kind at a rate equal to 4% rather than in cash. As of | ||
|---|---|---|
| December 30, 2024 and January 1, 2024 the effective interest | ||
| rates were from 14.92% to 15%. | 10,436 | 10,081 |
| to pay interest in kind at a rate equal to 6% rather than in cash. | ||
| --- | --- | --- |
| As of December 30, 2024 and January 1, 2024 the effective | ||
| interest rates were 15.16% and 15.18%, respectively. | 80,988 | 76,952 |
| Financing obligations relating to sales of restaurants maturing at | ||
| --- | --- | --- |
| various dates through October 1, 2039, bearing interest rates | ||
| ranging from 3.20% to 7.06% | 7,850 | 7,923 |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, as of December 30, 2024, the effective interest rates ranged from 14.92% to 15%. In some instances, Checkers allowed interest to be paid 'in kind' at a rate of 4%. In other instances, Checkers allowed interest to be paid 'in kind' at a rate of 6%. Also as of December 30, 2024, the effective interest rate was 15.16%.
For a prospective Checkers franchisee, this information is relevant because it provides insight into the interest rates Checkers was subject to. It's important to note that these rates may not directly apply to franchisee financing, but they offer a general indication of the financial environment Checkers operates in. Franchisees should inquire about current financing options and associated interest rates during their due diligence process.
The FDD also mentions financing obligations relating to sales of restaurants maturing through October 1, 2039, with interest rates ranging from 3.20% to 7.06%. This indicates the range of interest rates Checkers has on its financing obligations. This information is part of Checkers' financial statements and provides context for understanding the company's overall financial health.
Prospective franchisees should consult with financial advisors to understand the implications of these interest rates and how they might affect their investment in a Checkers franchise. Understanding Checkers' financial obligations and interest rate environment can help franchisees make informed decisions about their own financing and business planning.