What was the outstanding balance of the note payable by Caring Transitions as of December 31, 2024?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ch 24, 2025 the date on which the financial statements were available to be issued.
2. SHAREHOLDERS' EQUITY & NOTE PAYABLE:
At December 31, 2024, 2023 and 2022 there were 55 voting shares and 31 non-voting shares outstanding. In 2019, 14 non-voting shares were purchased back from a shareholder for $379,558. The purchase was recorded as a return of paid in capital of $12,030; the balance was reported as treasury shares. The purchase was financed with a note payable of $214,532.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the balance of the note payable as of December 31, 2024, was $44,412. This note payable originated in 2019 to finance the repurchase of 14 non-voting shares from a shareholder for $379,558. The initial note payable amount was $214,532, with a 3% interest rate, payable over seven years.
For a prospective franchisee, this information provides insight into Caring Transitions's financial obligations and how they manage their capital structure. Understanding the company's debt obligations can help franchisees assess the financial stability of the franchisor. The note's origin from a shareholder buyback is also relevant, as it indicates how Caring Transitions handles equity transactions and their impact on the company's financials.
It's important to note that this note payable is just one aspect of Caring Transitions's overall financial health. A prospective franchisee should review the complete financial statements, including the balance sheet, income statement, and cash flow statement, to gain a comprehensive understanding of the company's financial position. Additionally, it would be prudent to inquire about any other outstanding debts or financial obligations that may not be explicitly detailed in this specific excerpt.