When was Chesters' non-revolving line of credit repaid?
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, the non-revolving line of credit was repaid in June 2023. The table provided in Item 21 of the FDD lists the liabilities of Chesters as of December 31, 2023, and December 31, 2022.
For a prospective franchisee, this detail from Chesters's financial statements provides insight into the company's debt management. The repayment of the non-revolving line of credit could indicate improved financial health or a strategic decision to reduce debt.
Reviewing the repayment of debt along with other financial data, such as revenue trends and profitability, can help potential franchisees assess the financial stability of Chesters. It's important to consider this information in the context of Chesters's overall financial performance and future plans.