What is the face amount of the note payable with the Small Business Administration for Hyper Kidz?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
igations satisfied through the | | | | | | | | passage of time | | 14,063 | | 4,279 | | 3,950 | | Total revenues | $ | 139,805 | $ | 100,370 | $ | 70,037 |
NOTE 3 – NOTE PAYABLE
Notes payable consist of the following at December 31,
| 2023 | 2022 | |
|---|---|---|
| Note payable with the Small Business Administration Face | $ 79,000 | $ 79,000 |
| amount of $79,000, payable in 360 monthly installments o |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the face amount of the note payable with the Small Business Administration is $79,000. This note is payable in 360 monthly installments of $407, which includes interest at a rate of 3.75%. The final payment for this note is due on September 21, 2050, and it is collateralized by the assets of the company.
For a prospective Hyper Kidz franchisee, this information is relevant because it provides insight into the financial obligations and debt structure of the franchisor, Boomerang Franchise, LLC. Understanding the franchisor's financial health and debt commitments can help a franchisee assess the stability and reliability of the franchise system. Knowing that the note is collateralized by the company's assets also gives an indication of the security behind the debt.
The consistent face amount of $79,000 in both 2022 and 2023 suggests that the principal amount of the loan has not been significantly reduced during that period, with only current maturities being deducted. This could be due to the loan's structure or repayment schedule. Franchisees should consider this information in the context of the franchisor's overall financial performance and consult with financial advisors to understand the implications fully.
It is important to note that these financial statements are unaudited, as indicated in the FDD. Prospective franchisees should be aware of this limitation and consider requesting audited financial statements or conducting their own due diligence to verify the financial information provided.