What was the total amount of Chesters' long-term debt in 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| LIABILITIES AND MEMBERS' EQUITY | ||
|---|---|---|
| LONG-TERM LIABILITIES | ||
| Operating lease liabilities, less current portion | 1,842,053 | 905,867 |
| Long-term debt | 1,123,700 | 1,429,725 |
| Total long-term liabilities | 2,965,753 | 2,335,592 |
| TOTAL LIABILITIES | 9,711,979 | 7,387,342 |
| MEMBERS' EQUITY | 4,861,345 | 4,098,834 |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the company's total long-term debt for 2023 was $1,123,700. This figure represents the outstanding balance of Chesters's debt obligations that are due more than one year from the balance sheet date. This debt is part of the total long-term liabilities, which also includes operating lease liabilities, less the current portion.
For a prospective franchisee, understanding Chesters's debt level is crucial as it provides insight into the company's financial stability and its ability to support its franchisees. A high level of debt could indicate financial strain, which might affect the franchisor's capacity to invest in franchisee support, marketing, or new product development. Conversely, a manageable debt level suggests a stable financial foundation.
It's important to note that this long-term debt is part of Chesters's overall liabilities, which totaled $9,711,979 in 2023. The long-term debt contributes to the total liabilities and members' equity, which amounted to $14,573,324 for the same year. Reviewing these figures in the context of Chesters's assets and equity provides a comprehensive view of the company's financial health.
Prospective franchisees should consider these figures in conjunction with other financial metrics and information provided in the FDD, and possibly seek advice from a financial advisor, to assess the financial risk and stability of investing in a Chesters franchise.