By what year was the loan from ERA International MIC repaid by Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
gher than what would be expected if the federal statutory rate were applied to income before income taxes primarily because of certain expenses deductible for financial reporting purposes that are not tax deductible.
NOTE 9 RELATED PARTY TRANSACTIONS
During 2006, the Company received a loan from ERA International MIC (which was subsequently acquired by MIC) totaling $734,000. The note bore interest at 1.75% per annum and contained no fixed repayment terms, and the loan was repaid during 2008. The Company owes MIC a total of $101,078 for accrued interest payable at December 31, 2024 and 2023 on this loan. The Company
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, a loan that the company received in 2006 from ERA International MIC, totaling $734,000, was repaid during 2008. The loan had an interest rate of 1.75% per annum and did not have fixed repayment terms.
It is important to note that while the principal amount of $734,000 was repaid in 2008, Expense Reduction Analysts still owes MIC for accrued interest and other items. As of December 31, 2024, the company owed MIC $101,078 for accrued interest on this loan, as well as $136,451 for unpaid royalties and other advances. These amounts are classified as Payable to Related Party within the long-term liabilities section of the balance sheet.
This related-party transaction indicates the financial relationship between Expense Reduction Analysts and its parent company, MIC. Prospective franchisees should be aware of these ongoing financial obligations, as they could potentially impact the financial stability and operations of the company. It is advisable for potential franchisees to inquire about the details of these related-party transactions and their potential impact on the franchise system.