What was the total amount of long-term debt for Cinch I.T. on December 31, 2023?

According to Cinch I.T.'s 2024 Franchise Disclosure Document, the company's long-term debt on December 31, 2023, was $98,500. This debt is related to a note payable with an interest rate of 3.75%, secured by all of Cinch I.T.'s assets. The note is payable in monthly installments of principal and interest of $508, with the final payment due in February 2052.

Notably, the monthly payments were deferred for 30 months and are scheduled to begin in September 2024. The principal maturities are set to commence in 2028, after the accrued interest has been repaid. This indicates a period where the company is not required to make principal payments, which could ease short-term cash flow constraints.

For a prospective Cinch I.T. franchisee, this information provides insight into the company's financial obligations and debt structure. Understanding the terms of the long-term debt, such as the interest rate, payment schedule, and security, can help franchisees assess the financial stability and risk profile of the franchisor. It's also worth noting that the long-term debt remained consistent from 2022 to 2023, suggesting a stable debt situation during that period.