When do principal maturities begin for the long-term debt of Cinch I.T.?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
made to the prior year's financial statements in order for them to be comparable with the current year, with no effect on net income or retained earnings.
3. LONG-TERM DEBT
Long-term debt consists of the following at December 31:
2023 2022
Note payable, with interest at 3.75 percent, secured by all assets of the Company, payable in monthly installments of principal and interest of $508, due February 2052.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the company has a note payable with interest at 3.75 percent, secured by all assets, with monthly installments of $508 due in February 2052. Monthly payments were deferred for 30 months, beginning in September 2024.
The document specifies that principal maturities for this long-term debt begin in 2028, after the accrued interest is repaid. This indicates that while Cinch I.T. will start making payments in September 2024, these initial payments will primarily cover the interest that has accrued during the deferral period.
For a prospective Cinch I.T. franchisee, this information provides insight into the company's debt structure and repayment schedule. Understanding the timing of principal maturities can be useful in assessing the financial health and stability of the franchisor.