What is the interest rate range for Exit's notes?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Short-term notes payable - related parties consists of loans to the Company from employees. These notes are short term with maturity dates in 2024. Interest rates were 0%, 20% and 20% at December 31, 2024, 2023 and 2022, respectively.
Interest accrues on the note at 3.00% per annum.
Interest accrues on the note at 3.75% per annum.
Interest accrues on the note at 2.18% per annum.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the interest rates on notes payable vary. Some notes, specifically those to related parties, had interest rates of 0% in 2024, 20% in both 2023 and 2022.
For notes payable to Exit Realty Corp. International for franchise territories, the interest rate is 3.00% per annum. This rate applies to notes for territories in Wisconsin, Minnesota, Michigan, and Illinois. These notes have varying monthly installment amounts and are payable through September 2033.
Additionally, a Small Business Administration note has an interest rate of 3.75% per annum, with monthly installments of $731 from November 18, 2022, through November 2052. An unsecured note with New Summit Partners, LLC accrues interest at 2.18% per annum and is payable in a lump sum on September 30, 2025. Therefore, the interest rates for Exit's notes range from 0% to 20%.