What is the annual interest rate on the SBA loan obtained by Aw?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
was $51,502 and $51,502 respectively. These non-interest-bearing loans are unsecured and due on demand.
6. LOAN PAYABLE SBA
During 2020 the Company obtained a note payable of $25,900 from the US Small Business Administration (SBA). This note is collateralize
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company obtained a note payable of $25,900 from the US Small Business Administration (SBA) in 2020. This note is collateralized by the assets of the company and has an interest rate of 3.75% with a term of 30 years. Monthly payments of $120 are scheduled to begin in 2023.
For a prospective Aw franchisee, this information is relevant because it provides insight into the financial obligations of the company. Understanding the terms of the SBA loan, such as the interest rate and repayment schedule, can help franchisees assess the financial stability and management of Aw.
It's important to note that this loan was obtained by Aw itself, not by individual franchisees. However, the financial health of the franchisor can impact the support and services they are able to provide to their franchisees. Therefore, reviewing the franchisor's financial statements, including details about their debts and obligations, is a crucial part of the due diligence process for any potential franchisee.