What is the maturity date for the related party revolver for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| January 1, 2024 (Successor) | January 2, 2023 (Predecessor) | |
|---|---|---|
| Related party revolver maturing April 25, 2025 bearing interest at LIBOR plus an applicable margin or an alternative base rate plus an applicable margin. | 2: | 1,000 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the related party revolver matures on April 25, 2025. The interest on this revolver is based on LIBOR plus an applicable margin or an alternative base rate plus an applicable margin.
This means that Checkersrallys has a credit line with a related party that must be repaid by April 25, 2025. The interest rate on this credit line is variable, based on either the London Interbank Offered Rate (LIBOR) or an alternative base rate, plus an additional margin. The specific interest rate will depend on the prevailing market conditions and the terms of the agreement.
For a prospective franchisee, this information is relevant because it provides insight into Checkersrallys's debt structure and financial obligations. A related party revolver could indicate a close financial relationship between Checkersrallys and its affiliates. Franchisees should consider the implications of this debt on Checkersrallys's financial stability and its ability to support its franchisees.