When did Cd One Price Cleaners stop renewing the line of credit agreement?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | ||
|---|---|---|---|
| Office furniture | $ 9,352 | $ | - |
| Computer equipment | 7,181 | 7,638 | |
| Leasehold improvements | 14,893 | - | |
| Total cost | 31,426 | 7,638 | |
| Less accumulated depreciation | 5,981 | 5,860 | |
| and amortization | |||
| $ 25,445 | $ | 1,778 |
Depreciation and amortization expense totaled $5,473 for the year ended December 29, 2023 ($3,187 in 2022).
4. Line of Credit
The Company entered into a $1,300,000 line of credit agreement dated August 18, 2020, and maturing August 18, 2021. The line of credit agreement was renewed for $1,000,000 on August 18, 2021, through August 18, 2022, and again through August 18, 20
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to Cd One Price Cleaners' 2025 Franchise Disclosure Document, the company stopped renewing its line of credit agreement in 2023. The company initially entered into a $1,300,000 line of credit agreement on August 18, 2020, which was set to mature on August 18, 2021.
The agreement was then renewed for $1,000,000 on August 18, 2021, extending through August 18, 2022, and again through August 18, 2023. However, the FDD states that the line of credit agreement was not renewed after August 18, 2023.
It's worth noting that Cd One Price Cleaners had no draws on the line of credit in either 2023 or 2022, and there was no outstanding balance at the end of those fiscal years. This may have factored into the decision not to renew the agreement.