How much did Kidokinetics draw on note payable in 2023?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
tes payable: | | | | | 2023 | 2022 | 2021 | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------|------|---|--| | Note payable to a bank with an initial principal balance of $30,000. The note accrues interest at a rate of 18% per annum, requires monthly payments of $1,499, and matures in December 2025. | $ 30,000 | $ | $ | _ | | | Note payable to a bank with an initial principal balance of $76,050. The note accrued interest at a rate of 33% per annum, required weekly payments of $1,725, and matured in October 2023. | 30,000 | 60
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the company drew $30,000 on a note payable in 2023. This note was to a bank with an initial principal balance of $30,000, accruing interest at 18% per annum, requiring monthly payments of $1,499, and maturing in December 2025.
Additionally, Kidokinetics had another note payable to a bank with an initial principal balance of $76,050. This note accrued interest at a rate of 33% per annum, required weekly payments of $1,725, and matured in October 2023.
For a prospective franchisee, this indicates Kidokinetics' reliance on debt financing and the associated interest expenses. It's important to note the terms of these notes, including interest rates and maturity dates, as they reflect the company's financial obligations and cash flow management. Understanding the franchisor's debt structure can help a franchisee assess the financial stability and potential risks associated with investing in the franchise.