When does the Craters & Freighters line of credit expire?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
, Net | $ 197,251 $ | 153,931 |
Note 5: Line of Credit
The Company has a $100,000 line of credit available with a bank. No advances were outstanding as of December 31, 2024 and 2023. The line of credit expires on December 17, 2025 and bears interest at the Daily SOFR rate plus 2.75%. T
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters has a $100,000 line of credit with a bank. As of December 31, 2024, and December 31, 2023, there were no outstanding advances on this line of credit.
The line of credit is set to expire on December 17, 2025. The interest rate applied to any borrowed funds is the Daily SOFR rate plus 2.75%. This line of credit is secured by a general business security agreement.
For a prospective Craters & Freighters franchisee, this indicates that the franchisor has access to a limited amount of credit, which may be used for various business needs. However, it is important to note that the line of credit's expiration date is in December 2025, and there is no guarantee that Craters & Freighters will renew or secure a similar credit facility in the future. This could potentially impact the franchisor's financial flexibility and ability to support its franchisees.