What was the cash paid for interest by Fast Fix Jewelry And Watch Repairs in 2022?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
0 | $ | 5,161,849 | | Less unamortized debt issuance cost | | (134,820) | | (211,860) | | Less current portion | | (840,411) | _ | (834,876) | | | S | 3,348,269 | $ | 4.115.113 |
In November 2016, the Company entered into a $7,550,000 senior term loan ("previous term loan") with a financial institution. When satisfied in full during 2022, the previous term loan had interest fixed rate of 9 percent with no Paid-In-Kind (PIK) interest.
Jewelry Repair Enterprises, Inc. Notes to Consolidated Financial Statements
For the years ended December 31, 2023 and 2022
Note 6. Long-Term Debt, Continued
In September 2022, the Company paid the previous term loan in full and entered into a $5,300,000 senior term loan with a new financial institution. The loan bears interest at Prime Rate plus 9 percent, plus 1 percent PIK interest that is compounded and added to the principal balance (17.5 and 16 percent at December 31, 2023 and 2022, respectively). Monthly principal payments of approximately $69,000 are due with a balloon payment of the balance due upon maturity. The loan matures October 1, 2025. The Company is subject to certain financial and non-financial covenants associated with the agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the specific amount of cash paid for interest by Fast Fix Jewelry And Watch Repairs in 2022 is not explicitly detailed within the provided excerpts. While the document discusses long-term debt and interest rates associated with those debts, it does not break down the actual cash outflow for interest payments during that year. Instead, the document focuses on items such as the Employee Retention Credit (ERC) income received in 2022 ($375,000) and its impact on the consolidated balance sheet.
Specifically, Note 6 describes the company's debt structure, including a $7,550,000 senior term loan that was satisfied in full during 2022 with a fixed interest rate of 9 percent. It also mentions a new $5,300,000 senior term loan entered into in September 2022 with a variable interest rate (Prime Rate plus 9 percent, plus 1 percent PIK interest). However, the FDD does not state the total interest paid in cash on either loan during 2022.
To get a clear picture of the interest expenses, a prospective Fast Fix Jewelry And Watch Repairs franchisee should ask the franchisor for the company's complete audited financial statements. This will provide a detailed breakdown of interest expenses and other financial obligations. Understanding these costs is crucial for assessing the financial health and profitability of the franchise.