What is the interest rate for the related party Restatement Date Term Loan for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| January 1, 2024 (Successor) | January 2, 2023 (Predecessor) | |
|---|---|---|
| Related party Restatement Date Term Loan maturing April 25, 2023 bearing interest at LIBOR plus an applicable margin or an alternative base rate plus an applicable margin. Interest is paid quarterly. | e | 19,244 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the related party Restatement Date Term Loan maturing April 25, 2023, bears interest at LIBOR plus an applicable margin or an alternative base rate plus an applicable margin. Interest is paid quarterly.
For a prospective Checkersrallys franchisee, this indicates that Checkersrallys has financial obligations with interest rates tied to LIBOR or an alternative base rate, plus a margin. The specific interest rate will fluctuate based on changes to the LIBOR or the alternative base rate.
It is important to note that the loan mentioned here matured in 2023. The document does not specify the interest rate for any Restatement Date Term Loan beyond that date. A prospective franchisee should inquire about the current status and interest rates of any existing related-party loans, as these could impact the financial stability of Checkersrallys.