How much was the margin loan for Cd One Price Cleaners on December 29, 2023?

According to Cd One Price Cleaners's 2025 Franchise Disclosure Document, the balance in the margin loan account was $707,835 on December 29, 2023. This loan is obtained from a brokerage firm, where the company borrows a portion of the purchase price of common stocks, using these stocks as collateral.

This type of loan carries inherent risks. If the value of the stocks used as collateral declines, the brokerage firm may issue a margin call, requiring the company to deposit additional funds or sell securities to maintain the required equity percentage in the account. This could lead to mandatory sales of securities at the brokerage firm's discretion, potentially resulting in losses for the company.

For a prospective Cd One Price Cleaners franchisee, this information highlights the financial strategies and potential risks associated with the franchisor's financial management. Understanding the franchisor's borrowing practices and the potential impact of market fluctuations on their financial stability is crucial for assessing the overall risk and stability of the franchise system.