What was the interest due on the loan margin for Cd One Price Cleaners in 2024?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
29, 2023 | $ - | $ 3,358,800 | | | Level 1 | Level 2 | Level 3 | Total | | Common stock | $ 2,802,853 | $ - | $ - | $ 2,802,853 | Realized and unrealized gains and losses on common stock for the year ended December 27, 2024, are summarized below:
| 2024 | 2023 | |
|---|---|---|
| Net realized gain (loss) for equity securities |
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the interest due on the loan margin for the year 2024 was ($41,908). This figure represents the expense incurred by Cd One Price Cleaners related to borrowing from a brokerage firm, where the loan is secured by common stocks.
The loan is used to finance the purchase price of common stocks, with the stocks themselves acting as collateral. The interest due on the loan margin reflects the cost of maintaining this financing arrangement. It's important to note that the value is negative, indicating an expense or reduction in earnings.
Prospective franchisees should be aware of how Cd One Price Cleaners manages its finances and investments, as these activities can impact the overall financial health of the company. Understanding the interest expenses associated with margin loans can provide insights into the company's borrowing practices and risk management strategies.