Who guarantees the Closet Storage Concepts line of credit with TD Bank?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
e or more. The profit‐sharing feature is discretionary in nature. Retirement expense for the year ended December 31, 2024 was $22,535.
NOTE 6 LINE OF CREDIT
The Company currently has a line of credit with TD Bank in the amount of $200,000. Interest is payable at varying dates based on the bank's prime rate plus 0.49% (7.99% at December 31, 2024). The line of credit is guaranteed by
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the company has a $200,000 line of credit with TD Bank. The interest is payable at varying dates based on the bank's prime rate plus 0.49%, which was 7.99% as of December 31, 2024.
The line of credit is guaranteed by Closet Storage Concepts' sole stockholder. This means that the stockholder is personally liable for the debt if the company defaults. Additionally, the line of credit is collateralized by the assets of the company, meaning that TD Bank has a claim on the company's assets if it defaults.
As of December 31, 2024, there was no outstanding amount on the line of credit. This indicates that Closet Storage Concepts had fully paid off the line of credit at that time. This information is relevant to potential franchisees as it provides insight into the company's financial obligations and the security provided for its debts.