What is the face amount of the Small Business Administration note payable 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 Hyper Kidz's 2024 Franchise Disclosure Document, the company has a note payable with the Small Business Administration (SBA) with a face amount of $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. This information is based on the company's financial statements for 2023 and 2022.
For a prospective Hyper Kidz franchisee, this indicates that the franchisor has an existing debt obligation with the SBA. Understanding the franchisor's financial obligations can provide insight into the financial stability of the company. While the note is collateralized by the company's assets, it is important to note that this debt is being actively managed with regular monthly payments.
It is also worth noting that the FDD includes information about COVID-19 relief funds that Hyper Kidz received from the SBA, which were later forgiven. This demonstrates the company's ability to leverage available resources during challenging times. Prospective franchisees should consider the franchisor's financial management practices and history when evaluating the franchise opportunity.