What is the interest rate on 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. The borrowing limits are up to $200,000, and the interest rate is 6.25%. This line of credit matures in June 2025 and is collateralized by a majority of Anago's assets. As of December 31, 2024, 2023, and 2022, the balance on this line of credit was $-0-.
For a prospective franchisee, this information is relevant because it provides insight into Anago's financial health and how it manages its debt. The interest rate of 6.25% on the line of credit suggests the terms Anago has with its bank. The fact that the balance on the line of credit was $-0- as of the end of 2024, 2023, and 2022 indicates that Anago has not been drawing on this credit line recently.
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 these assets if Anago defaults on the credit line. The line of credit matures in June 2025, so Anago may need to renew or refinance this credit line in the future. A prospective franchisee may want to inquire about Anago's plans for this line of credit and its overall debt management strategy.