What was the amount of interest expense for Chesters in 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
ITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**
| 2024 | 2023 | |
|---|---|---|
| REVENUES: | ||
| Product sales | $ 27,865,394 | $ 44,962,498 |
| Other revenue | 12,246,716 | 6,370,755 |
| Franchise fees | 246,000 | 286,274 |
| 40,358,110 | 51,619,527 | |
| OPERATING EXPENSES: | ||
| Cost of product sales | 21,752,259 | 33,882,255 |
| Advertising expenses | 199,081 | 165,180 |
| Selling, general and administrative expenses | 15,340,272 | 14,504,501 |
| Depreciation and amortization | 522,927 | 462,783 |
| 37,814,539 | 49,014,719 | |
| OPERATING INCOME | 2,543,571 | 2,604,808 |
| OTHER INCOME (EXPENSE) | ||
| Loss on distributor agreement termination | (2,514,311) | - |
| Interest income | 92,633 | 20,370 |
| Other (expense) income | (10,032) | 96,706 |
| Interest expense | (181,560) | (139,101) |
| Total other expense | (2,613,270) | (22,025) |
| NET INCOME | (69,699) | 2,582,783 |
| MEMBERS' EQUITY AT BEGINNING OF YEAR | 4,861,345 | 4,098,834 |
| DISTRIBUTIONS | (2,743,252) | (1,820,272) |
| MEMBERS' |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the interest expense for the year ended December 31, 2024, was $181,560. This figure reflects the cost Chesters incurred for its debt obligations during that fiscal year.
For a prospective franchisee, understanding Chesters's interest expense can provide insight into the company's financial leverage and how it manages its debt. A high interest expense might indicate that the company has a significant amount of debt, which could impact its financial stability and ability to invest in growth or support franchisees. Conversely, a lower interest expense could suggest a more conservative approach to debt management.
It's important for potential franchisees to consider these figures in the context of Chesters's overall financial performance, including its revenues, operating income, and net income. Analyzing these financial statements can help franchisees assess the financial health and stability of the franchisor, which is a critical factor in evaluating the franchise opportunity. Additionally, comparing these figures to previous years can reveal trends and potential areas of concern or improvement.