What was the balance after restructure for the Exit franchise territory in Michigan as of December 31, 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
cost, fair value, and the corresponding gross unrealized holding gains and losses recognized in accumulated other comprehensive income (loss) on available-for-sale securities as of December 31, 2024, 2023, and 2022 are as follows:
| Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Gross Fair Value | |
|---|---|---|---|---|
| December 31, 2024 | $ 62,813 | $ 6,065 | $ (2,294) | $ 66,584 |
| Available-for-sale |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the balance after restructure for the Michigan franchise territory as of December 31, 2022, was $676,976. This figure reflects the financial status of the territory after accounting for advances and debt reduction related to a note payable. The balance before the restructure was $1,088,526, with advances of $46,973 and a debt reduction of $458,523 contributing to the final restructured balance.
This information is crucial for prospective Exit franchisees as it provides insight into the financial restructuring that Exit underwent. Understanding the debt obligations and how they were managed can help a potential franchisee assess the financial stability and management practices of the franchisor. The restructuring involved reducing debt by a significant amount, which could indicate efforts to improve the financial health of the franchise territories.
It's important to note that the note related to the Michigan territory was dated August 1, 2021, and subsequently amended on September 12, 2023. This note is payable in monthly installments ranging from $4,675 to $7,546 through September 2033, with interest accruing at 3.00% per annum. This ongoing obligation should be considered when evaluating the overall financial commitments associated with the Exit franchise.