What is the total amount of the Aw Loan Payable SBA?
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 total loan payable to the SBA is detailed in the financial statements. As of December 31, 2024, the total loan payable to SBA is $28,914. This amount reflects the aggregate of payments due in the coming years, specifically $532 due in 2025, $553 due in 2026, $574 due in 2027, $596 due in 2028, $619 due in 2029, and $26,040 due after 2029.
This information is crucial for prospective Aw franchisees as it provides insight into the company's debt obligations. Understanding the franchisor's financial liabilities can help franchisees assess the financial stability and overall health of the company. The loan payable to the SBA indicates that Aw has utilized government-backed financing in the past, which could be viewed positively as it demonstrates access to capital and support from financial institutions.
However, it is also important for potential franchisees to consider the terms and conditions of the SBA loan, such as the interest rate, repayment schedule, and any collateral requirements. While the FDD provides a snapshot of the loan payable, further due diligence may be necessary to fully understand the implications of this debt on Aw's financial performance and future growth prospects. Franchisees should also inquire about any other outstanding debts or financial obligations that Aw may have, as this can impact the franchisor's ability to support its franchisees and invest in the brand.