What was the outstanding balance of the Chesters term loan with a 7.25% interest rate in 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
he Agreement), as amended, with a financial institution and has the following outstanding debt:
| 2024 | 2023 | |
|---|---|---|
| Term loan – interest is payable at 7.25%. | $ 718,235 | $ 1,084,85 |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the outstanding balance on the term loan with a 7.25% interest rate was $718,235 in 2024. The note matures in December 2028 and is collateralized by certain business assets.
This information is relevant for prospective franchisees as it provides insight into Chesters's debt obligations and financial health. Understanding the terms and amounts of existing loans can help a franchisee assess the financial stability of the franchisor. Knowing that the loan is collateralized by business assets also gives franchisees an idea of what assets are at risk in case of default.
It's important to note that this is just one aspect of Chesters's financial situation. A prospective franchisee should review the entire financial statement and consult with a financial advisor to get a comprehensive understanding of the company's financial health and its potential impact on their investment.