How much short-term debt was forgiven for Coffee News in 2024?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
sors who have not made significant progress in developing the areas or who choose to focus on other countries. Repurchased franchise rights are recorded at cost when repurchased and are expensed as licenses are sold.
2. Borrowing and Leasing
Short-term debt consisted of $60,000 Scotiabank VISA card issued in r
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, $20,000 of short-term debt was forgiven. Specifically, Coffee News had a $60,000 Scotiabank VISA card issued in response to Covid-19. The agreement stipulated that if the debt was repaid within one year of issuance, only $40,000 needed to be repaid, with the remaining $20,000 being forgiven.
This debt was paid before the December 31, 2023, deadline, and the forgiven $20,000 was reported as non-operating income. This indicates that Coffee News successfully managed its short-term debt obligations and benefited from the forgiveness clause in the agreement.
It is important to note that this debt forgiveness occurred in 2023, not 2024. The 2024 financial statements would reflect the impact of this forgiveness as non-operating income, but the actual forgiveness event took place in the prior year.