What is the collateral for the note payable to Bank of West for Closet Storage Concepts?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
included on the balance sheet as of December 31, 2024, in the amount of $413,641, which is comprised of the credit receivable only.
NOTE 12 SUBSEQUENT EVENT
The Company borrowed $130,000 under a loan agreement with a bank on January 23,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Closet Storage Concepts does not mention a note payable to Bank of West. However, it does detail other debt obligations and lines of credit.
Specifically, the FDD mentions a loan agreement with a bank on January 23, 2025, for $130,000, bearing interest at 6.74%, repayable over five years with monthly installments of $2,564. This loan is collateralized by all assets. Additionally, Closet Storage Concepts had a line of credit with TD Bank.
As the FDD does not provide information regarding a note payable to Bank of West, it is important for a prospective franchisee to ask Closet Storage Concepts's franchisor directly about any current or past financial obligations with Bank of West, including the original amount, interest rate, payment terms, and specific assets used as collateral. This information is crucial for assessing the financial health and stability of the company.