What was the interest rate on Exit's bank revolving demand facility as of December 31, 2024?
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 had a bank revolving demand facility. As of December 31, 2024, the interest rate on this facility was the bank's prime rate plus 1.00%, which equaled 6.45%. The authorized limit of the facility was $750,000 Canadian dollars, equivalent to $521,232 USD on that date.
The facility is secured by a general security agreement over all of Exit's property and an assignment of a guaranteed investment certificate of $750,000 Canadian dollars (approximately $531,970 USD), which is included in short-term investments. The document states that 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 this facility. This information is relevant for a prospective franchisee to understand Exit's financial obligations and how the company manages its debt. Understanding the interest rate and the amount of the facility utilized can provide insight into Exit's financial health and its ability to support its franchisees.