What was the total debt less current maturities for Checkersrallys as of January 1, 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
028 | | 146 | | Thereafter | - | 252 | | Total | $ | 1,679 |
(Tabular Dollars in Thousands, Except Share and per Share Data)
13. Debt, Financing Obligations and Credit Facilities
Debt, financing obligations and credit facilities consisted of the following as of January 1, 2024 (Successor), and January 2, 2023 (Predecessor):
| January 1, 2024 (Successor) | January 2, 2023 (Predecessor) | |
|---|---|---|
| Related party note maturing April 25, 2024 bearing interest at LIBOR plus an applicable margin or an alternative base rate plus an applicable margin, Interest is paid quarterly. | $ = | $ 181,913 |
| 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 |
| Related party note maturing April 25, 2025 bearing interest at LIBOR plus an applicable margin or an alternative base rate plus an applicable margin, Interest is capitalized on all payment dates. | *: | 65,126 |
| Related party amended note maturing April 25, 2025 bearing interest at LIBOR plus an applicable margin or an alternative base rate plus an applicable margin. Interest is capitalized on all payment dates. | 5 | 31,066 |
| 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 |
| Obligations under premium financing arrangements, with short-term maturities | 1,028 | 1,127 |
| Financing obligations relating to restaurant sales maturing at various dates through October 1, 2039, bearing interest rates ranging from $3.20%$ to $7.06%$ | 7,923 | 8,640 |
| Last-Out Term Loans, maturing June 16, 2028, bearing interest at an alternative base rate plus 8% or the Adjusted Term SOFR plus 9% plus a credit adjustment spread. Company has option to pay interest in kind at a rate equal to 6% rather than in cash. | 76,952 | ie. |
| New Money Loans, maturing June 16, 2027, bearing interest at an alternative base rate plus 6% or the Adjusted Term SOFR plus 7% plus a credit adjustment spread. Company has option to pay interest in kind at a rate equal to 4% |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, as of January 1, 2024, the total debt, financing obligations, and credit facility, less current maturities, was $93,658. This figure represents the company's total long-term debt obligations after subtracting the portions of those debts due within the next year.
For a prospective Checkersrallys franchisee, this number provides insight into the financial leverage of the company. A high debt level can indicate higher risk, as more of the company's revenue must go towards debt service. However, it can also indicate investment in growth.
Franchisees should consider this figure in conjunction with other financial metrics, such as revenue and profitability, to assess the overall financial health of Checkersrallys. Understanding the debt structure can help potential franchisees evaluate the stability and long-term viability of the franchise system.