Question: There is something I don't get about the bad guys. Why would they kidnap a teenage boy?
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Answer: If you're talking about why they kidnapped Zack, Zack is the younger brother of Jake. Jake still owed Johnny money, but when Johnny and his gang go look for Jake, they can't find him. They see Zack and kidnap him, essentially for ransom, until Jake fully pays Johnny back.
Bishop73
It's also important to remember that this is a film based on true events, the kidnapping and murder of Nicolas Markowitz. All the names in the film have been changed.
Why did they murder Nick?
Although this should be posted as a different question, in real life, Jesse (the one Nick's brother owed money to) had decided to let Nick go home. However, Jesse found out what kind of legal consequences he'd face for kidnapping Nick and decided to have Nick killed instead (obviously thinking he could get away with murder and deny any kidnapping allegations).
Bishop73