As of December 31, 2024, what was the balance on Anago's line of credit?
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 had a line of credit agreement with a bank that had borrowing limits up to $200,000 with an interest rate of 6.25%, which matures in June 2025. This line of credit is secured by a majority of Anago's assets. As of December 31, 2024, the balance on Anago's line of credit was reported as $-0-.
For a prospective franchisee, this indicates that Anago did not have any outstanding debt on this particular line of credit at the close of 2024. This could be a positive sign, suggesting that Anago is managing its finances responsibly.
However, it is important to note that the line of credit is collateralized by a majority of Anago's assets. While the balance was zero at the end of 2024, Anago could draw on this credit line in the future, which could impact the company's financial stability. A potential franchisee should consider Anago's overall financial health and how the existence of this credit line might affect the franchisor's ability to support its franchisees.