What is the interest rate range for Checkersrallys' financing obligations relating to restaurant sales, which mature at various dates through October 1, 2039?
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 company has financing obligations stemming from restaurant sales that mature at different dates up to October 1, 2039. These obligations carry interest rates ranging from 3.20% to 7.06%.
For a prospective Checkersrallys franchisee, this information is relevant if they are considering purchasing an existing restaurant from Checkersrallys that has existing financing obligations. Understanding the interest rate range is crucial for assessing the financial implications of taking on such obligations.
The interest rate range provides insight into the cost of borrowing associated with these restaurant sales. Franchisees should carefully evaluate the terms and conditions of these financing obligations, including the maturity dates and any associated risks, before making a decision. It's also important to compare these rates with current market rates to ensure they are competitive.