As of December 30, 2024, approximately how much did the NPF owe Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ugh January 1, 2024 (Successor) and from January 3, 2023, through June 16, 2023 (Predecessor), respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NOTE 10 - DEBT
Debt consisted of the following as of December 30, 2024 (Successor) and January 1, 2024 (Successor):
| Successor | ||||
|---|---|---|---|---|
| December 30, 2024 | January 1, 2024 | |||
| Obligations under premium financing arrangements, with short | $ | 976 | $ | 1,028 |
| term maturities. | ||||
| Last-Out Term Loans, maturing June 16, 2028, bearing interest at | 80,988 | 76,952 | ||
| an alternative base rate plus 8% or the Adjusted Term SOFR | ||||
| plus 9% plus a credit adjustment spread. Company has option | ||||
| 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. | ||||
| New Money Loans, maturing June 16, 2027, bearing interest at an | 10,436 | 10,081 | ||
| alternative base rate plus 6% or the Adjusted Term SOFR plus | ||||
| 7% plus a credit adjustment spread. Company has option to pay | ||||
| interest in kind at a rate equal to 4% rather than in cash. As of | ||||
| December 30, 2024 and January 1, 2024 the |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, as of December 30, 2024, the company's total debt was $92,059. After subtracting current maturities of $1,788, the total debt less current maturities was $90,271.
This debt includes several components: obligations under premium financing arrangements with short-term maturities amounting to $976, Last-Out Term Loans maturing June 16, 2028, totaling $80,988, and New Money Loans maturing June 16, 2027, which amounted to $10,436. These loans bear interest at varying rates, with options for Checkersrallys to pay interest in kind rather than in cash.
For a prospective franchisee, this debt level is important to consider as it reflects the financial obligations of Checkersrallys. While the document does not specify the exact amount owed by the NPF (presumably National Purchasing Federation) to Checkersrallys, understanding the overall debt structure provides insight into the company's financial health and its ability to support its franchisees. Franchisees should inquire about the specifics of the relationship between Checkersrallys and the NPF and how it might affect them.