What was the total amount of Chesters' long-term debt as of December 31, 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 2,154,968 | $ 2,515,674 |
| Accounts receivable, net | 1,656,584 | 5,299,346 |
| Other receivables | 421,459 | - |
| Due from related parties | 1,354,649 | 1,117,539 |
| Inventories | - | 1,247,308 |
| Prepaid expenses and other current assets | 139,284 | 80,338 |
| Total current assets | 5,726,944 | 10,260,205 |
| PROPERTY AND EQUIPMENT, NET | 1,100,082 | 878,650 |
| OPERATING LEASE RIGHT-OF-USE ASSETS, NET | 1,631,103 | 1,820,812 |
| GOODWILL, NET | 1,290,926 | 1,613,657 |
| TOTAL ASSETS | $ 9,749,055 | $ 14,573,324 |
| LIABILITIES AND MEMBERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | $ 1,070,100 | $ 2,904,502 |
| Accrued liabilities | 2,070,417 | 1,285,555 |
| Customer deposits | 361,152 | 609,822 |
| Current maturities of long-term debt | 480,225 | 1,628,607 |
| Current portion of operating lease liability | 121,564 | 181,240 |
| Unearned franchise fees | 190,950 | 136,500 |
| Total current liabilities | 4,294,408 | 6,746,226 |
| LONG-TERM LIABILITIES | ||
| Other long-term liabilities | 174,238 | - |
| Operating lease liabilities, less current portion | 1,720,489 | 1,842,053 |
| Long-term debt | 1,511,526 |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the company's long-term debt as of December 31, 2023, was $1,123,700. This figure represents the outstanding balance of Chesters's debt obligations that are due beyond the next 12 months.
For a prospective franchisee, understanding Chesters's debt level is crucial for assessing the financial stability of the franchisor. A high level of long-term debt could indicate financial strain, which might impact Chesters's ability to support its franchisees or invest in the brand's future growth. Conversely, a manageable debt level suggests that Chesters is financially healthy and capable of meeting its obligations.
It is important to note that this figure only reflects Chesters's long-term debt and does not include other liabilities such as accounts payable or accrued liabilities. A comprehensive financial analysis would involve examining all of Chesters's liabilities and assets to determine its overall financial health. Additionally, the FDD states that the company has a credit agreement with a financial institution.