What was the total amount of Checkersrallys interest expenses in 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | January 1, 2024 | June 16, 2023 | |||
|---|---|---|---|---|---|
| Other income (expense) | |||||
| Interest expense | (15,789) | (8,134) | (18,326) | ||
| Other income (expense) | 3 | 1 | (375) | ||
| Total other (expense) income | (15,786) | (8,133) | (18,701) |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the company's interest expense for the fiscal year ended December 30, 2024, was $(15,789). This figure represents the total cost Checkersrallys incurred in interest payments on its debts and other financing arrangements during that period. It is important to note that this is an expense, and is represented as a negative number.
Interest expenses are a common cost for businesses, especially those with significant debt or financing obligations. For a prospective Checkersrallys franchisee, understanding the franchisor's interest expenses can provide insight into the company's financial leverage and overall financial health. High interest expenses could indicate that the company has a significant debt burden, which might impact its ability to invest in franchisee support or growth initiatives.
It's also worth noting that Checkersrallys's FDD includes a supplemental disclosure of cash flow information, which states that cash paid for interest during the same period was $7,859. The difference between the total interest expense and the cash paid for interest may be due to non-cash interest expenses, such as the amortization of debt discounts or premiums, or accrued interest that has not yet been paid in cash. A prospective franchisee should inquire about the reasons for this difference to gain a clearer understanding of Checkersrallys's financing structure and cash flow dynamics.