What was the amount of interest paid by Eos Worldwide in 2024?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
tribution | $ (3,000,000) - (715,000) | $ 3,788,511 1,346,431 | $ 788,511 1,346,431 (715,000) | | Balance, December 31, 2023 | (3,715,000) | 5,134,942 | 1,419,942 | | Net income | | 2,722,563 | 2,722,563 | | Balance, December 31, 2024 | $ (3,715,000) | $ 7,857,505 | $ 4,142,505 |
Statements of Cash Flows Years Ended December 31, 2024 and 2023
| 2024 | 2023 | ||
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | $ | 2,722,563 | $ 1,346,431 |
| Adjustments to reconcile net income to net cash (used in) | |||
| provided by operating activities: | |||
| Increase in assets: | |||
| Due from affiliates | (3,274,179) | (1,016,647) | |
| (Decrease) increase in liabilities: | |||
| Deferred revenue | (475,793) | 926,157 | |
| Net cash (used in) provided by operating activities | _ | (1,027,409) | 1,255,941 |
| Cash flows from financing activities: | |||
| Member distrib |
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 FDD, Eos Worldwide paid $1,168,664 in interest during 2024. In 2023, the interest paid was $1,176,544. These figures are part of the supplemental disclosure of cash flow information within the financial statements.
For a prospective franchisee, this indicates the level of debt-related expenses Eos Worldwide incurs. It's important to note that these interest payments reflect the financial obligations of the franchisor, not necessarily the franchisee. However, understanding the franchisor's financial health and obligations can provide insight into the stability and potential risks associated with investing in the franchise system.
Franchisees should consider this information in the context of the overall financial performance of Eos Worldwide. High interest payments could suggest a significant debt burden, which might impact the franchisor's ability to invest in franchisee support, marketing, or system improvements. It is typical for franchisors to have debt, but the amount and its impact should be carefully evaluated.
Prospective franchisees may want to inquire about the nature of the debt, the interest rates, and the repayment terms to fully understand the financial implications for Eos Worldwide. Additionally, comparing these figures to those of other franchisors in the same industry can provide a benchmark for assessing the relative financial health of Eos Worldwide.