What were the total notes receivable and deferred franchise fees for Anago as of December 31, 2024?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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 receivable has been considered a long-term asset on the consolidated balance sheets. As of December 31, 2024, 2023, and 2022 the balance on the note receivable totaled $529,500, $529,500 and $529,500, respectively.
The Company entered into a note receivable with a master franchise bearing an interest rate of 2.00% requiring monthly payment of principal and interest totaling $2,194 through March 2023. The note receivable is not secured. The balance on the note receivable as of December 31, 2024, 2023, and 2022 was $21,738, $21,738, and $36,552, respectively.
Notes receivable also as of December 31, 2024, 2023, and 2022 consist of franchise notes receivable for the initial purchases of the master franchisee territories totaling $46,724, $54,794, and $60,925, respectively.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, as of December 31, 2024, the company had several notes receivable. These included a $529,500 note receivable with a related entity, another with a master franchise totaling $21,738, and franchise notes receivable for initial purchases of master franchisee territories totaling $46,724. These figures provide a snapshot of the company's financial dealings and how it manages its incoming revenue streams through financing arrangements with related entities and franchisees.
The notes receivable with related entities and master franchisees indicate that Anago uses financing as part of its business strategy. The largest note receivable, $529,500, is with a related entity and is considered a long-term asset due to its maturity date in May 2038. The note receivable with a master franchise totaling $21,738 bears an interest rate of 2.00%, with monthly payments through March 2023. Additionally, franchise notes receivable for initial purchases of master franchisee territories totaled $46,724 as of December 31, 2024.
Prospective franchisees should consider these figures in the context of Anago's overall financial health and business model. Understanding the nature and terms of these notes receivable can offer insights into the company's financial strategies and its relationships with franchisees and related entities. It is important to note that the information provided does not include details on deferred franchise fees, so further inquiry may be needed to fully assess Anago's financial position.