What was the total amount of long-term debt for Moes Southwest Grill as of December 29, 2024?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
gregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
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Atlanta, Georgia March 7, 2025
Consolidated balance sheets
(In thousands)
| December 29, 2024 | December 31, 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 11,594 | $ 22,662 |
| Restricted cash and cash equivalents - securitization | 32,747 | 29,582 |
| Accounts receivable, net of allowance for credit losses of | ||
| $1,748 and $1,143 in 2024 and 2023, respectively | 44,272 | 37,049 |
| Inventories | 1,128 | 978 |
| Prepaid expenses and other current assets | 12,118 | 9,263 |
| Advertising funds assets | 9,927 | 7,643 |
| Intercompany receivables from Parent | 3,277 | 3,277 |
| Total current assets | 115,063 | 110,454 |
| Property, equi |
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the company's total long-term debt as of December 29, 2024, was $1,335,842. This figure represents the debt remaining after subtracting the current portion of long-term debt and debt discount and issuance costs from the total debt of $1,365,613.
For a prospective franchisee, understanding the franchisor's debt is crucial. A high level of debt could indicate financial instability, which might affect the franchisor's ability to support its franchisees. It could also signal that the franchisor is heavily leveraged, potentially impacting its capacity to invest in innovation, marketing, or other areas that benefit the franchise system.
It's important to note that this long-term debt is part of a larger debt structure that includes senior secured notes issued by GoTo Foods Funding LLC and Jamba Juice Funding LLC, indirect subsidiaries of GTFL. These notes are secured by the intellectual property and franchising-related assets held by the company and its affiliates. The Co-Issuers are dependent on Moe's Southwest Grill and certain other subsidiaries for sufficient cash flow to service this debt.
Prospective franchisees should carefully review the financial statements and footnotes in the FDD, particularly Note 11, to fully understand the nature and terms of this debt. They should also consider seeking professional financial advice to assess the potential risks and implications associated with the franchisor's financial condition.