What is the total amount of the SBA loan payable by Aw after 2028?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
he Company, bearing interest at 3.75% 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 2024 | $ 513 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the total amount of the SBA loan payable after 2028 is $23,132. This figure represents the remaining principal balance Aw is obligated to pay on its SBA loan beyond the year 2028.
This information is relevant for prospective franchisees as it provides insight into Aw's financial obligations and long-term debt. Understanding the franchisor's debt structure can help franchisees assess the financial stability and health of the company. A significant long-term debt might indicate potential financial strain, while a manageable debt level can suggest a stable financial foundation.
It's important to note that this figure represents only the principal amount. Franchisees should also consider the interest rate (3.75%) and the remaining term of the loan (30 years) to fully understand the total cost of the debt. Reviewing the complete financial statements and notes, including details about the SBA loan terms and conditions, is essential for a comprehensive understanding of Aw's financial position.