What is the amount due in 2026 for the Aw SBA loan payable?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
% with a term of 30 years. Monthly payments of $120 are scheduled to begin in 2023.
Minimum annual principal payments are as follows:
| Due in 2025 | $ 532 |
|---|---|
| Due in 2026 | 553 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the amount due in 2026 for the SBA loan payable is $553. This represents the minimum principal payment scheduled for that year.
This information is crucial for prospective Aw franchisees as it provides a clear understanding of their debt obligations. Knowing the specific amount due in 2026 allows for accurate financial planning and budgeting. Franchisees can anticipate this expense and ensure they have sufficient funds to meet their loan obligations.
It's important to note that this figure represents only the principal payment. Franchisees should also factor in interest payments, which are not detailed in this table but are mentioned elsewhere in the FDD. The SBA loan, obtained in 2020, carries an interest rate of 3.75%, with monthly payments of $120 beginning in 2023. Understanding the full scope of loan payments, including both principal and interest, is essential for sound financial management.
Prospective franchisees should carefully review the complete loan agreement and consult with financial advisors to fully understand their obligations and plan accordingly. This will help ensure they can meet their financial commitments and maintain a healthy business.