What was the amount of current maturities less for Chesters in 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
and $145,397, respectively.
6. LONG-TERM DEBT
The Company has a credit agreement (the Agreement), as amended, with a financial institution and has the following outstanding debt:
| 2023 | 2022 | |
|---|---|---|
| Term loan – interest is payable at 7.25%. | $ 1,084,858 | $ 1,428,264 |
| The note matures in December 2028, collateralized | ||
| by certain business assets | ||
| Term loan – interest is payable at 4.5%. | 1,428,910 | 1,650,177 |
| Matures in October 2024, collateralized by | ||
| certain business assets | ||
| Tenant improvement loan – interest is payable at 8.25%. | 238,539 | - |
| Matures in October 2028, collateralized by | ||
| certain business assets |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, in 2023, the current maturities were $2,752,307. After subtracting these current maturities, the resulting value was $1,628,607.
This figure represents the remaining balance after deducting the portion of long-term debt due within the next year (current maturities) from the total long-term debt. For a prospective Chesters franchisee, this indicates the amount of long-term debt that Chesters has outstanding beyond the upcoming year.
Understanding the breakdown of Chesters's debt into current and long-term portions can help a potential franchisee assess the financial stability and obligations of the company. It's a common practice to review these figures to gauge the company's ability to manage its debt and meet its financial obligations.