What is the total amount of 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 total loan payable to the SBA is detailed in the financial statements. As of December 31, 2024, the total SBA loan payable is $28,914. This amount includes several components: $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.
Breaking down the loan payable into these future payment amounts provides transparency regarding Aw's debt obligations. For a prospective franchisee, this information is useful for assessing the financial stability of the franchisor and understanding the long-term liabilities that Aw is responsible for. This can indirectly affect franchisees, as the financial health of the franchisor can influence the support and resources available to franchisees.
The loan obtained during 2020 was for $25,900 with a 3.75% interest rate and a 30-year term, collateralized by the company's assets. Monthly payments of $120 began in 2023. The detailed breakdown of the SBA loan payable helps potential franchisees understand the structured nature of Aw's debt and how it is being managed over time.
Reviewing the liabilities section of a franchisor's financial statements is a standard practice in franchise due diligence. Understanding the nature and terms of loans like the SBA loan is crucial for assessing the financial risk and stability of the franchise system. Prospective franchisees should compare these figures with industry benchmarks and assess Aw's ability to meet its debt obligations while supporting its franchise network.