What was the amount of proceeds from long-term debt for Chesters in 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
LOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| CASH FLOWS FROM OPERATING ACTIVITIES | _ | _ | |
|---|---|---|---|
| Net income | $ (69,699) | $ | 2,582,783 |
| Adjustments to reconcile net income to net cash | |||
| provided by operating activities: | |||
| Loss on disposal of fixed assets | 9,969 | - | |
| Amortization and depreciation | 522,927 | 462,783 | |
| Amortization of operating lease right-of-use assets | 189,709 | 387,265 | |
| Changes in operating assets and liabilities: | (4 = 00 000) | ||
| Accounts receivable | 3,642,762 | (1,563,980) | |
| Other receivables | (421,459) | (400,405) | |
| Due from related parties | (237,110) | (433,495) | |
| Inventories | 1,247,308 | (116,596) | |
| Prepaid expenses and other current assets | (89,469) (1,834,402) | (17,181) | |
| Accounts payable Accrued liabilities | 784,862 | 2,184,712 (79,688) | |
| Customer deposits | (248,670) | 75,943 | |
| Operating lease liabilities | (181,240) | (364,784) | |
| Unearned franchise fees | 54,450 | (88,400) | |
| Other long-term liabilities | 174,238 | (00,400) | |
| Net cash provided by operating activities: | 3,544,176 | 3,029,362 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Purchases of equipment | (401,074) | (360,666) | |
| Net cash used in investing activities | (401,074) | (360,666) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Repayment of long-term debt | (1,186,667) | (725,090) | |
| Proceeds from long-term debt | 426,111 | - | |
| Distribution to members | (2,743,252) | (1,820,272) | |
| Net cash used in financing activities | (3,503,808) | (2,545,362) | |
| (DECREASE) INCREASE IN CASH | (360,706) | 123,334 | |
| CASH AT BEGINNING OF YEAR | 2,515,674 | 2,392,340 | |
| CASH AT END OF YEAR | $ 2,154,968 | $ | 2,515,674 |
| SUPPLEMENTARY DISCLOSURE OF CASH | |||
| FLOWS INFORMATION: | |||
| Cash paid during the year for interest | $ 181,560 | $ | 139,101 |
| Decrease to operating lease right-of-use assets | _ | ||
| due to contract terminations | $ 391,533 | $ | 846,599 |
| Additions to operating lease right-of-use assets obtained from operating lease liabilities | $ - | $ | 1,930,004 |
| Reduction of operating lease right-of-use assets for tenant improvements | $ - | $ | 180,000 |
| Noncash activity: | |||
| Assets ac |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the proceeds from long-term debt in 2024 were $426,111. This figure reflects the cash inflow Chesters International, LLC received from new long-term borrowing during the year.
For a prospective franchisee, understanding the franchisor's debt activity can provide insights into the financial strategies and health of the company. Proceeds from long-term debt might be used for various purposes, such as investments in growth initiatives, acquisitions, or refinancing existing debt.
It's important to note that while proceeds from debt can fuel expansion and improvements, they also create obligations for future repayment. Therefore, franchisees should consider this information in conjunction with other financial metrics to assess the overall stability and prospects of Chesters.