What was the total debt for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
itional incurrence of indebtedness and scheduled amortization requirements are subject to compliance with maximum leverage ratio levels. As of December 31, 2023 and 2022, the Issuer was in compliance with all debt-service coverage covenants.
The Company's long-term debt and trade notes receivable bear interest at market rates. Thus, management believes their carrying amounts approximate fair value.
Debt as of December 31, consists of the following:
| 2023 | 2022 |
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Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the company's total debt in 2023 was $1,461,844. This figure is derived from the financial statements included in the FDD, which provide a detailed breakdown of the company's liabilities. The total debt is calculated before subtracting deferred financing costs. After deducting these costs of $18,919, the total net debt amounts to $1,461,844. The long-term debt, which excludes the current portion, was $1,451,356.
Specifically, the debt is composed of several series of senior notes and VFN (Variable Funding Note) facilities. These include Series 2021-1 Senior Notes amounting to $780,000, Series 2022-1 Senior Notes at $402,825, and Series 2023-1 Senior Notes totaling $272,938. Additionally, there's a 2021 VFN Facility of $25,000. These figures provide a comprehensive view of the different types of debt obligations Precision Door Service had in 2023.
Prospective franchisees should note that understanding the debt structure of the franchisor is crucial. While this figure represents the total debt, it's important to consider how Precision Door Service manages its debt and whether it impacts the support and resources available to franchisees. Reviewing the company's financial statements and discussing these figures with a financial advisor can provide a clearer picture of the financial health and stability of the franchise system.