How much cash did Afuri Ramen Dumpling pay for interest in 2021?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ing, and accounting wages, franchisee training, as well as office rent, insurance, and utilities.
The Company had an $80,000 unsecured note with a related party, Afuri Japan, in which $20,000 annual payments were scheduled to be made with an annual interest rate of 1.4%, maturing in 2024. The Company repaid the note in 2021.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company paid $2,004 in interest for the year ended December 31, 2021. In 2020, the company paid $0 in interest. This interest was related to an $80,000 unsecured note with Afuri Japan, a related party, which carried an annual interest rate of 1.4% and was scheduled for $20,000 annual payments. The note was fully repaid in 2021.
For a prospective franchisee, this detail provides insight into Afuri Ramen Dumpling's financial obligations and its relationships with related parties. Understanding the nature and terms of such financial arrangements can help franchisees assess the financial stability and management practices of the franchisor.
The fact that the note was repaid in 2021 suggests an improvement in the company's financial position. However, franchisees should continue to monitor the company's financial statements for any new related-party transactions or debt obligations that could impact its ability to support the franchise system.