What was the reported amount of Exit's line of credit in 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 with an authorized limit of $750,000 Canadian dollars, which is equivalent to $521,232 USD as of December 31, 2024. This facility bears interest at the bank's prime rate plus 1.00%, resulting in a rate of 6.45% as of the same 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, equivalent to $531,970 US dollars, included in short-term investments.
As of December 31, 2024, Exit had utilized $521,232 of this line of credit. In comparison, the company had utilized $151,217 and $0 of the facility as of December 31, 2023, and 2022, respectively. The bank credit facility is subject to certain reporting requirements but is not subject to any financial covenants.
For a prospective franchisee, this indicates Exit's access to capital and its usage over the past three years. The availability of a line of credit can provide financial flexibility for Exit, potentially benefiting franchisees through continued support and investment in the brand. However, the utilization of the credit line also suggests a need for capital, and franchisees should consider this in the context of Exit's overall financial health and stability.