What amount of Hyper Kidz's long-term debt matures in 2024?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
|
NOTE 2 – CONTRACT BALANCES (CONTINUED)
Disaggregation of Revenues
Disaggregated revenues based on the satisfaction of performance obligations in the Company's contracts with franchisees as of December 31, 2021, and 2020 is as follows:
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| Performance obligations satisfied at a point in | $ 11,473 | $ 2,827 | $ 246,351 |
| time | |||
| Performance obligations satisfied through the | 88,897 | 67,210 | 6,913 |
| passage of time | |||
| Total revenues | $ 100,370 | $ 70,037 | $ 253,264 |
| NOTE 3 – NOTE PAYABLE | |||
| Notes payable consist of the following at December 31, | 2022 | 2021 | |
| Note payable with the Small Business Administration Face amount of $79,000, payable in 360 monthly installments of $407 including interest at the rate of 3.75% Final payment due on September 21, 2050. Collateralized by assets of the Company. | $ 79,000 79,000 | $ 79,000 79,000 | |
| Less current maturities | (43 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the maturities of the company's long-term debt are detailed in Note 3. As of December 31, 2022, the amount of long-term debt due to mature in 2024 is $1,747. This debt relates to a note payable with the Small Business Administration. The original face amount of the note was $79,000, with repayment scheduled in 360 monthly installments of $407, including interest at 3.75%. The final payment is due September 21, 2050, and the loan is collateralized by the company's assets.
For a prospective Hyper Kidz franchisee, understanding the franchisor's debt obligations can provide insight into the financial stability of the company. Knowing the maturity schedule of long-term debt helps assess the company's ability to meet its financial obligations. A manageable debt maturity schedule, like the one presented, suggests that Hyper Kidz has planned for its future liabilities.
However, it is important to note that these figures are from December 31, 2022. While the FDD provides a snapshot of the company's financial situation, it is advisable for potential franchisees to seek updated financial information and clarification on any changes in debt obligations from Hyper Kidz before making an investment decision. Consulting with a financial advisor to review the FDD and related financial documents is also recommended.