As of December 31, 2024, what was the total outstanding balance of stockholder advances, including accrued and capitalized interest, payable on demand from Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
at December 31, 2022 and was paid in full during the year ended December 31, 2022.
Upper Midwest Realty, Inc. d.b.a. Exit Realty Upper Midwest 25 Notes to Financial Statements (continued) December 31, 2024, 2023, and 2022
NOTE 9 – RETIREMENT PLAN
The SEP is a defined contribution plan in which the Company may make discretionary contributions directly into eligible employees' individual retirement accounts. Such contributions cannot exceed annual prescribed limits and are tax-deferred to the employee. Total Company contributions for the years ended December 31, 2024, 2023, and 2022 were $5,050, $8,500, and $24,000, respectively.
NOTE 10 – CONCENTRATIONS
The Compa
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the total outstanding balance of stockholder advances, including accrued and capitalized interest, payable on demand was $14,860 as of December 31, 2024. In the previous year, December 31, 2023, the balance was $14,250.
For prospective Exit franchisees, this indicates the level of financial support the company has received from its shareholders. The advances are payable on demand, meaning the shareholders can request repayment at any time.
The company began imputing interest on these advances in 2024, based on an annual federal rate of 5.03%. The interest accrued during the year totaled $714, which was then capitalized and added to the principal balance. This detail provides insight into how Exit manages its related-party transactions and the costs associated with them.