What is the borrowing limit of Anago's line of credit with the bank?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
le assets, net consist of a trademark with a cost of $184,000 and the related accumulated amortization as of December 31, 2024, 2023, and 2022 of $154,356, $142,089, and $129,822, respectively. During the years ended December 31, 2024, 2023, and 2022 amortization expense totaled $12,267, $12,267, and $12,267, respect
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the company has a line of credit agreement with a bank that allows them to borrow up to $200,000. This line of credit carries an interest rate of 6.25% and matures in June 2025. The line of credit is secured by a majority of Anago's assets. As of the end of 2024, 2023, and 2022, the balance on this line of credit was $-0-.
For a prospective franchisee, this information provides insight into Anago's financial management and access to capital. The line of credit can be used for various business needs, such as managing cash flow, investing in growth opportunities, or covering unexpected expenses. The fact that the balance on the line of credit was zero for the past three years may indicate that Anago has been managing its finances effectively and has not needed to rely heavily on borrowing.
However, it's important to note that the line of credit is collateralized by a majority of Anago's assets, which means that the bank has a claim on those assets in the event that Anago defaults on the loan. Additionally, the line of credit matures in June 2025, so Anago will need to renew or refinance the line of credit before then. Prospective franchisees may want to inquire about Anago's plans for renewing or refinancing the line of credit and how this might impact the company's financial stability.