What is the interest rate 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 has a line of credit agreement with a bank that has borrowing limits up to $200,000. The interest rate on this line of credit is 6.25%, and it matures in June 2025. The line of credit is collateralized by a majority of Anago's assets. As of December 31, 2024, 2023, and 2022, the balance on the line of credit was $-0-.
This information is relevant to potential franchisees as it provides insight into Anago's financial health and how it manages its debt. The fact that the line of credit had a zero balance as of the end of 2024, 2023, and 2022 may indicate that Anago is not heavily reliant on debt financing.
However, the line of credit's existence and the fact that it is collateralized by the company's assets could also be seen as a potential risk. If Anago were to experience financial difficulties, the bank could seize its assets to repay the line of credit. Prospective franchisees should consider these factors when evaluating the financial stability of Anago.