What is the authorized limit of Exit's bank revolving demand facility in Canadian dollars?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
rised the following at December 31:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Notes payable, unsecured, non-interest | $ 90,000 | $ 420,000 | $ - |
| bearing, with varying repayment terms and | |||
| mature in 2028. | |||
| Notes payable, unsecured, with varying | |||
| repayment terms, bearing interest | |||
| between 4.00% and 6.00%, maturing | |||
| between 2027 and 2029. | 1,812,135 | 2,751,011 | 3,768,894 |
| 1,902,135 | 3,171,011 | 3,768,894 | |
| Less: current portion of long-term debt | (343,083) | (1,281,506) | (1,518,786) |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the company has a bank revolving demand facility with an authorized limit of $750,000 Canadian dollars. As of December 31, 2024, this was equivalent to $521,232 USD. The interest rate on this facility is the bank's prime rate plus 1.00%, which was 6.45% on December 31, 2024.
The facility is secured by a general security agreement over all of Exit's property and an assignment of a guaranteed investment certificate amounting to $750,000 Canadian dollars, equivalent to $531,970 USD, which is included in short-term investments. The bank credit facility is subject to certain reporting requirements but is not subject to any financial covenants.
As of December 31, 2024, Exit had utilized $521,232 of the facility. In the past, Exit utilized $151,217 as of December 31, 2023, and $0 as of December 31, 2022. This indicates that Exit's reliance on this credit facility has fluctuated over the past three years, with a significant increase in usage in 2024.