When does the term loan with a 4.5% interest rate mature for Chesters?
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 term loan with a 4.5% interest rate matured in October 2024. As of December 31, 2023, the outstanding balance on this loan was $1,428,910. The loan was collateralized by certain business assets.
This information is relevant to potential franchisees as it provides insight into Chesters's debt obligations and financial management. Understanding the terms and maturity dates of existing loans can help franchisees assess the financial stability of the franchisor. Knowing that a loan matured in October 2024 allows a franchisee to inquire about the current status of that debt and whether it was refinanced or paid off.
It is important for prospective franchisees to review the full financial statements and related notes in the FDD to gain a comprehensive understanding of Chesters's financial condition. Consulting with a financial advisor is also recommended to properly interpret the financial information and assess the risks and opportunities associated with investing in a Chesters franchise.