What was the total value of Chesters' long-term liabilities?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Other long-term liabilities | 174,238 | - | |
|---|---|---|---|
| Operating lease liabilities, less current portion | 1,720,489 | 1,842,053 | |
| Long-term debt | 1,511,526 | 1,123,700 | |
| Total long-term liabilities | 3,406,253 | 2,965,753 |
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, the company's total long-term liabilities for the two most recent years are detailed. In one year, Chesters' total long-term liabilities amounted to $3,406,253. In the subsequent year, this figure decreased to $2,965,753.
These liabilities consist of several components. 'Other long-term liabilities' were reported as $174,238 in the first year and are not specified for the second year. 'Operating lease liabilities, less current portion' accounted for $1,720,489 and $1,842,053 in the first and second years, respectively. 'Long-term debt' was $1,511,526 in the first year and $1,123,700 in the second year.
A prospective franchisee should understand the nature of these long-term liabilities, particularly the operating lease liabilities and long-term debt, as they reflect Chesters' financial obligations and could impact the franchisor's ability to support its franchisees. Reviewing these figures over time can provide insights into the financial stability and management of Chesters.