What secures Exit's bank revolving demand facility?
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 has a bank revolving demand facility with an authorized limit of $750,000 Canadian dollars ($521,232 USD as of December 31, 2024). This facility bears interest at the bank's prime rate plus 1.00%, which was 6.45% at the end of 2024.
The bank revolving demand facility is secured by a general security agreement over all of Exit's property. Additionally, the facility is secured by an assignment of a guaranteed investment certificate in the amount of $750,000 Canadian dollars, equivalent to $531,970 US dollars, which is included in short term investments.
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 the facility. In previous years, the company utilized $151,217 and $0 in 2023 and 2022, respectively.