What are the names of the Co-Issuers of the senior secured notes for Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
years: | | leases | | Subleases | |---|---|---|---|---| | 2025 | $ 14,104 | | $ ( 4,669) | | | 2026 | 12,995 | (3,629) | | | | 2027 | 9,625 | (1,961) | | | | 2028 | 6,458 | (920) | | | | 2029 | 4,953 | (454) | | | | Thereafter | 39,817 | (213) | | | | Total future minimum rental commitments | 87,952 | (11,846) | | | | Less: Imputed interest | (19,854) | | - | | | Present value of lease liabilities | 68,098 | | $ (11,846) | | Intangible assets, net at December 31, 2023 consists of the following:
| For the fiscal years ended: | 2024 | 2023 | | |---|---|---|---| | Operating lease income | $ 6,469 | | $ 9 ,240 | | Variable lease income | 121 | 112 | | | Franchise and other rental revenues | $ 6 ,590 | | $ 9 ,352 | Amortization expense of definite-lived intangible assets totaled $1,868 and $1,728 for the fiscal years ended December 29, 2024 and December 31, 2023, respectively.
Estimated future amortization expense for each of the next five years is as follows:
| Weighted average | ||
|---|---|---|
| Number of shares | exercise price | |
| Outstanding at December 25, 2022 | 218,837 | 182.43 |
| Granted | 34,182 | 251.48 |
| Exercised | (1,756) | 146.64 |
| Forfeited or expired | (39,323) | 161.73 |
| Outstanding at December 31, 2023 | 211,940 | 171.85 |
| Granted | 28,512 | 258.45 |
| Exercised | (1,131) | 174.49 |
| Forfeited or expired | (26,898) | 176.98 |
| Outstanding at December 29, 2024 | 212,423 | $ 170.82 |
| 2025 | $ 1,817 | |
| ------ | ------------- | |
| 2026 | 1, |
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the Co-Issuers of the senior secured notes for Moes Southwest Grill are GoTo Foods Funding LLC (formerly known as FOCUS Brands Funding LLC), referred to as the "Master Issuer," and Jamba Juice Funding LLC. These entities are limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiaries of GTFL. They issue outstanding senior secured notes under a securitized financing facility.
The Co-Issuers have issued multiple series of fixed-rate senior secured notes that were outstanding as of December 29, 2024. These include the 2024-1 6.422% Class A-2 notes with a principal amount of $125,000, the 2023-2 8.241% Class A-2 notes with a principal amount of $237,600, the 2022-1 7.206% Class A-2 notes with a principal amount of $347,013, and the 2017-1 5.093% Class A-2-II notes with a principal amount of $370,000. The Co-Issuers have also entered into revolving financing facilities of Series 2023-1 and 2022-1 Variable Funding Senior Notes, Class A-1, which allow for drawings of up to $200,000 each, totaling up to $400,000.
For a prospective Moes Southwest Grill franchisee, understanding the financial structure of the parent company and its subsidiaries can provide insights into the overall financial health and stability of the organization. The franchisee should be aware that the Co-Issuers are dependent on Moes Southwest Grill and other subsidiaries for sufficient cash flow to service the debt. This dependence highlights the importance of the franchisee's contribution to the overall financial performance of the Moes Southwest Grill system. Additionally, the franchisee should consider how these debt obligations might impact the franchisor's ability to invest in brand development, marketing, and support for franchisees.