What interest rate did Hydrodog charge on the $150,000 secured note receivable with a related party?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Name | Address | Telephone | Year Left System | |
|---|---|---|---|---|---|
| Arizona | Road Dawg, LLC | Unknown | Unknown | 2024 | |
| Louisiana | Scott McInnis | Unknown | Unknown | 2024 | |
| Texas | Marcus Gray | 4310 Brownstone Dr., Beaumont, TX 77706 | 352-484-6984 | 2024 | #### Notes Receivable: |
On January 31, 2023, the Company entered into a $150,000 secured note receivable with a related party bearing interest at 6.5% per annum. Interest only payments began on March 1, 2023, and are due on the first day of each month thereafter, until February 1, 2025, at which time the remaining principal balance, together with any accrued but unpaid interest became due. The note is secured by certain real estate of the related party. The note receivable has not been repaid as of the date of these audited financial statements. The amount outstanding, including accrued interest, was $168,688 and $158,938 at December 31, 2024 and 2023, respectively. The Company also has an additional note receivabl
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the company entered into a secured note receivable with a related party on January 31, 2023, for $150,000. The note bears interest at a rate of 6.5% per annum.
Interest-only payments began on March 1, 2023, and are due on the first day of each month until February 1, 2025. At that time, the remaining principal balance, along with any accrued but unpaid interest, became due. The note is secured by certain real estate held by the related party.
As of the date of the audited financial statements, the note receivable had not been repaid. The outstanding amount, including accrued interest, was $168,688 at December 31, 2024, and $158,938 at December 31, 2023. Hydrodog also has an additional note receivable from a third party related to franchise sales.