What was the total debt for Fast Fix Jewelry And Watch Repairs in 2022?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
oximately $78,000 and $62,800 for the years ended December 31, 2023 and 2022, respectively.
Note 6. Long-Term Debt
Long-term debt consists of the following as of December 31:
| _ | 2023 | _ | 2022 | |
|---|---|---|---|---|
| Senior term loan | $ | 4,323,5 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, the company's long-term debt is detailed in Note 6 of the financial statements. As of December 31, 2022, the senior term loan was $5,161,849, which is reduced by unamortized debt issuance costs of $211,860 and the current portion of $834,876. This results in a total of $4,115,113.
In September 2022, Fast Fix Jewelry And Watch Repairs entered into a $5,300,000 senior term loan with a financial institution. This loan bears interest at the Prime Rate plus 9 percent, along with an additional 1 percent Paid-In-Kind (PIK) interest, which is compounded and added to the principal balance. The interest rates were 17.5% and 16% at December 31, 2023 and 2022, respectively. The loan requires monthly principal payments of approximately $69,000 and has a balloon payment due upon maturity on October 1, 2025.
Additionally, in 2022, Fast Fix Jewelry And Watch Repairs adopted ASU Topic 842, which pertains to leases, and recognized approximately $13,401,000 of operating right-of-use assets and lease liabilities on the consolidated balance sheet. This change in accounting standards significantly impacts how the company reports its lease obligations, reflecting the present value of future lease payments as a liability on the balance sheet.