What is the range of interest rates for Checkersrallys' financing obligations relating to sales of restaurants?
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's 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. This information is based on the company's financial statements as of December 30, 2024. The total financing obligations were $7,850,000.
For a prospective Checkersrallys franchisee, this indicates the potential cost of financing the purchase of a restaurant. The interest rate will affect the overall cost of the financing and the monthly payments. The maturity date indicates the length of the financing term.
It's important to note that these rates are from the company's perspective as the seller, not necessarily the rates a franchisee would obtain from a third-party lender. Franchisees should consult with financial advisors to understand the best financing options available to them and to assess the risks and benefits of financing a franchise purchase.
The fact that Checkersrallys provides financing with terms extending to 2039 suggests a long-term commitment to supporting restaurant sales. However, franchisees should carefully evaluate the terms and conditions of any financing offered by Checkersrallys and compare them to other available options.