What was the reported amount of The Standardx's long-term debt as of December 31, 2024?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| LIABILITIES AND EQUITY | ||
|---|---|---|
| CURRENT LIABILITIES: | ||
| Current maturities of long-term debt | $ 456 | $ 751 |
| Accounts payable | 475 | 493 |
| Accrued expenses and other current liabilities | 565 | 468 |
| Current contract liabilities | 1,553 | 1,598 |
| Accrued compensation and benefits | 192 | 210 |
| Current operating lease liabilities | 33 | 41 |
| Liabilities held for sale | — | 17 |
| Total current liabilities | 3,274 | 3,578 |
| Long-term debt | 3,326 | 2,305 |
| Long-term contract liabilities | 843 | 1,759 |
| Long-term operating lease liabilities | 245 | 273 |
| Other long-term liabilities | 1,810 | 1,351 |
| Total liabilities | 9,498 | 9,266 |
| Commitments and contingencies (Note 15) | ||
| EQUITY: |
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company's long-term debt as of December 31, 2024, was reported as $3,326 million. This figure is a key indicator of the company's financial leverage and its obligations extending beyond the next year.
For a prospective franchisee, understanding the franchisor's debt level is crucial. A high level of long-term debt could indicate financial strain on The Standardx, which might affect its ability to support franchisees or invest in the brand's future growth. It could also signal higher financial risk, potentially impacting the stability of the franchise system.
In comparison, the long-term debt reported as of December 31, 2023, was $2,305 million. The increase in long-term debt from 2023 to 2024 could be due to various factors such as acquisitions, capital expenditures, or changes in financing strategies. Franchisees should inquire about the reasons for this increase to assess any potential implications for the franchise system's financial health and stability. Reviewing the notes to the financial statements, particularly Note 15 as referenced in the liabilities section, may provide additional context.
It is important for potential franchisees to conduct thorough due diligence, including consulting with a financial advisor, to evaluate the implications of The Standardx's debt level on their investment. This assessment should also consider the overall financial health of the company and its strategic plans for managing its debt obligations.