What were the principal payments on notes payable for Boulder Designs in 2023?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
greements in the amount of $563,824 and $576,824, respectively, consist of franchise rights previously sold by the Company that were repurchased due to various circumstances with the intent to resale. An impairment loss of $28,000, $30,000, and $30,000 was charged to operations during 2024, 2023, and 2022, respectively.
(4) Notes Payable
Notes payable at December 31, 2024 and 2023 includes three notes payable on demand with an aggregate balance of $248,000 and $255,000, respectively. One note bears interest at a rate of 4% and the other two notes do not have a stated interest rate.
(5) Long-Term Debt
Long-term debt at December 31, 2024 and 2023 consists of the following:
| 2024 | 2023 | ||
|---|---|---|---|
| Note payable to a finance company that matures in | |||
| July 2025 with no stated interest rate and monthly | _ | ||
| payments of $1,399; secured by |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the current installments on notes payable, representing principal payments, were $20,793 in 2023. This figure reflects the portion of Boulder Designs' total long-term debt that was due within one year from the balance sheet date.
Specifically, the notes payable include obligations to a finance company and the Small Business Administration (SBA), as well as notes related to the acquisition of franchise rights. The note payable to a finance company had monthly payments of $1,399 and no stated interest rate, maturing in July 2025. The note payable to the SBA matures in June 2052, carries an interest rate of 3.75%, and involves monthly payments of $1,226.
The table in the FDD provides a snapshot of Boulder Designs' debt structure and repayment obligations as of the end of 2023. A prospective franchisee should consider these debt obligations when assessing the financial health and stability of Boulder Designs. Understanding the nature and terms of these notes payable can offer insights into the company's financing strategies and its ability to manage debt.