What interest rate range applies to Checkersrallys' financing obligations relating to restaurant sales?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Less: deferred financing cost | (341) | | Non-current portion | $ 90,271 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NOTE 11 - FINANCING OBLIGATIONS
Financing obligations consisted of the following as of December 30, 2024 (Successor) and January 1, 2024 (Successor):
| Successor | ||||
|---|---|---|---|---|
| December 30, 2024 | January 1, 2024 | |||
| Financing obligations relating to sales of restaurants maturing at | 7,850 | 7,923 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys' 2025 Franchise Disclosure Document, the interest rates for financing obligations relating to sales of restaurants range from 3.20% to 7.06%. These obligations mature at various dates through October 1, 2039. As of January 1, 2024, the total financing obligations amounted to $7,923,000, decreasing to $7,850,000 by December 30, 2024.
For a prospective franchisee, this information is relevant if Checkersrallys provides financing to facilitate the sale of existing restaurants. The interest rate range provides an indication of the potential cost of borrowing from Checkersrallys to acquire a restaurant. The maturity date indicates the potential length of the financing term.
It is important to note that these rates apply to financing obligations related to restaurant sales and may not reflect the interest rates applicable to other types of financing that Checkersrallys might offer. Franchisees should inquire about the specific terms and conditions of any financing offered by Checkersrallys, including interest rates, repayment schedules, and any associated fees.