v3.25.2
DEBT
 6 Months Ended
Jun. 29, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Long-term debt consisted of the following (in millions):
June 29, 2025December 29, 2024
Final MaturityAnticipated Call DateRateFace ValueBook ValueBook Value
Senior Debt
FB Royalty Securitization4/25/20517/25/20264.75 %$134.9 $133.6 $134.4 
GFG Royalty Securitization7/25/20517/25/20266.00 %267.1 263.9 265.2 
Twin Peaks Securitization10/26/205410/25/20277.00 %279.4 276.2 277.5 
Fazoli's/Native Securitization7/25/20517/27/20266.00 %124.3 124.3 125.4 
FB Resid Securitization7/25/202710.00 %53.9 53.8 53.8 
Senior Subordinated Debt
FB Royalty Securitization4/25/20517/25/20268.00 %45.0 43.1 42.7 
GFG Royalty Securitization7/25/20517/25/20267.00 %100.6 98.8 98.9 
Twin Peaks Securitization10/26/205410/25/20279.00 %57.3 54.1 53.7 
Fazoli's/Native Securitization7/25/20517/27/20267.00 %16.2 16.2 24.2 
FB Resid Securitization7/25/202710.00 %56.0 55.9 55.9 
Subordinated Debt
FB Royalty Securitization4/25/20517/25/20269.00 %15.5 15.4 15.5 
GFG Royalty Securitization7/25/20517/25/20269.50 %44.1 42.1 49.2 
Twin Peaks Securitization10/26/205410/25/202710.00 %77.7 71.3 45.6 
Total Securitized Debt1,272.0 1,248.7 1,242.0 
Elevation Note 7/19/2026N/A6.00 %1.8 1.7 2.0 
Twin Peaks Equipment Notes
5/5/2027 to 7/31/2028
N/A
7.99% to 11.50%
4.1 4.1 4.7 
Twin Peaks Construction Loan10/1/2025N/A12.50 %— — 3.2 
Promissory Note I7/25/2026N/A
16.90% to 18.65%
8.5 8.3 6.3 
Promissory Note II7/25/2026N/A
17.00%% to 18.65%%
4.1 4.0 — 
Promissory Note III6/30/2026N/A13.50 %10.0 9.1 — 
Total Debt$1,300.5 1,275.9 1,258.2 
Current portion of long-term debt(57.7)(49.2)
Long-term Debt$1,218.2 $1,209.0 
Terms of Outstanding Debt
Securitization Notes
The FAT Royalty securitization notes, the GFG Royalty securitization notes, the Twin Peaks securitization notes, the Fazoli's/Native securitization notes and the FB Resid notes (collectively, the "Securitization Notes") require that the principal (if any) and interest obligations be segregated to ensure appropriate funds are reserved to pay the quarterly principal and interest amounts due. The amount of monthly cash flow that exceeds the required monthly interest reserve is generally remitted to the Company. Interest payments are required to be made on a quarterly basis.
The material terms of the Securitization Notes contain covenants which are standard and customary for these types of agreements. As of June 29, 2025, the Company was in compliance with these covenants.
Fazoli's / Native Securitization
On March 28, 2025, the Company entered into an amendment to the Fazoli’s/Native Securitization pursuant to Omnibus Amendment No. 1, dated as of March 28, 2025 (the “Omnibus Amendment”), by and among the Company, FAT Brands Fazoli’s Native I, LLC (the “Issuer”), the subsidiaries of the Issuer (the “Guarantors”), UMB Bank, N.A., as trustee and securities intermediary, and each noteholder under the Fazoli’s/Native Securitization (the “Noteholders”). The Anticipated Call Date of all tranches of Notes issued under the Fazoli’s/Native Securitization has been extended from July 2023 to October 2025. If the Issuer has not repaid or refinanced the Notes by the Anticipated Call Date, additional interest equal to 1.0% per annum will accrue on each tranche of Notes. The Anticipated Repayment Date of the Class A-2 Notes has been extended from January 2025 to July 2026. If the Issuer has not repaid or refinanced the Class A-2 Notes by the Anticipated Repayment Date, additional interest equal to 2.5% per annum will accrue on the Class A-2 Notes. Certain financial covenants tied to debt service coverage ratios or leverage ratios of the Issuer that, if triggered, could cause a Rapid Amortization Event, Cash Flow Sweeping Event or Event of Default, have been relaxed or deferred to dates in 2026. The definition of Permitted Asset Dispositions in the Base Indenture has been amended to allow the disposition of leases and subleases of real estate which are producing negative cash flow and causing a material decrease in ongoing collections, including any sale of a Company Restaurant to a Franchisee for the conversion of a Company Restaurant to a Franchised Restaurant. This change is intended to permit the Company to refranchise all or a portion of its corporate-owned Fazoli’s restaurants. Provided that the Majority of Controlling Class Members have the right to instruct the Controlling Class Representative for purposes of the Amendment Documents.
Retained Notes
During the twenty-six weeks ended June 29, 2025, the Company repurchased certain of its securitized notes to be held for resale to third party investors and sold certain of its securitized notes previously repurchased or issued and not sold (collectively, the "Retained Notes"). During the twenty-six weeks ended June 29, 2025, cash proceeds from the sale of Retained Notes and cash used to repurchase Retained Notes was $27.0 million and $17.9 million including accrued interest, respectively. As of June 29, 2025, the Company held $148.9 million of Retained Notes which have been eliminated in consolidation.

Construction Loan Agreement (Twin Peaks)
On September 20, 2024, an indirect subsidiary of the Company entered into a loan agreement to borrow $3.2 million with an initial maturity of October 1, 2025, bearing interest at 12.5% per annum and is secured by land and building of a new corporate restaurant. The construction loan was paid in full during the first quarter of 2025.
Promissory Note I

During 2024, one of our wholly-owned subsidiaries entered into a financing arrangement to borrow money, where the proceeds would be used for general corporate purposes. The total outstanding amount on the promissory note was $8.3 million as of June 29, 2025. The promissory note has a maturity date of July 25, 2026 and bears interest at fixed rates between 16.90% and 18.65% per annum.

Promissory Note II

During 2025, one of our wholly-owned subsidiaries entered into a financing arrangement to borrow money, where the proceeds would be used for general corporate purposes. The total outstanding amount on the promissory note was $4.0 million as of June 29, 2025. The promissory note has a maturity date of July 25, 2026 and bears interest at fixed rates between 17.00% and 18.65% per annum.

Promissory Note III

During 2025, one of our wholly-owned subsidiaries entered into a financing arrangement to borrow money, where the proceeds would be used for general corporate purposes. The total outstanding amount on the promissory note was $9.1 million as of June 29, 2025. The promissory note has a maturity date of June 30, 2026 and bears interest at 13.50% per annum.