What interest rate did Anago charge on the note receivable with a master franchisee?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
disbursements for interest during the years ended December 31, 2024, 2023, and 2022 totaled $26,064, $31,829, and $42,207, respectively. Cash disbursements for income taxes during the years ended December 31, 2024, 2023, and 2022 totaled $494,312, $215,857, and $180,024, respectively.
NOTE B – OPERATING INCOME ANALYSIS
A summary of the operating income is as follows:
| INC. | AND | SUBSIDIARIES | |
|---|---|---|---|
| NOTES TO CONSOLIDATED | FINANCIAL | STATEMENTS | |
| DECEMBER | 31, 2024, 2023, | and | 2022 |
NOTE C – NOTES RECEIVABLE
The Company has a note receivable with a related entity by common ownership totaling $529,500 bearing an interest rate of 2.94%. The principal balance and accrued interest payment is due in May 2038. Therefore, the note rec
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago entered into a note receivable with a master franchisee that bears an interest rate of 2.00%. This note required monthly payments of principal and interest totaling $2,194 through March 2023 and was not secured. As of December 31, 2024, the balance on this note receivable was $21,738, the same as it was on December 31, 2023. The balance on December 31, 2022, was $36,552.
Additionally, Anago had another note receivable with a master franchisee, which had a balance of $2,500 as of December 31, 2022. This note was not secured, was due on demand, and was paid off during 2023. These notes receivable, along with franchise notes receivable for the initial purchases of master franchisee territories, totaled $46,724 as of December 31, 2024; $54,794 as of December 31, 2023; and $60,925 as of December 31, 2022.
For a prospective franchisee, this indicates that Anago may provide financing options to master franchisees, though the terms can vary. The interest rates on these notes can be relatively low (2.00% in the case cited), and the notes may or may not be secured. It is important to note that these notes are specifically for master franchisees, and the terms and conditions may differ for unit franchisees. Prospective franchisees should inquire about available financing options and their specific terms during their due diligence process.