What was the amount of Management Recruiters' term loan payable as of December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
payments discounted back to present value using the notes effective interest rate.
| December 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|
| Total | Level 1 | Level 2 | Level 3 | ||||
| Cash | $ 1,255,520 | $ | 1,255,520 | $ | - | $ | - |
| Notes receivable | 4,027,385 | - | 4,027,385 | - | |||
| Accounts receivable | 38,239,036 | - | 38,239,036 | - | |||
| Notes receivable - impaired | 139,594 | - | - | 139,594 | |||
| Total assets at fair value | $ 43,661,535 | $ | 1,255,520 | $ | 42,266,421 | $ | 139,594 |
| Term loan payable | $ 3,065,903 | $ | - | $ | 3,065,903 | $ | - |
| Line of credit | 171,286 | - | 171,286 | - |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the term loan payable as of December 31, 2021, was $3,065,903. This amount reflects the company's obligation under its term loan agreement at that specific point in time. The term loan payable is categorized as Level 2, indicating it is measured using inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. This means the fair value is derived from models using observable market data.
This information is relevant for prospective Management Recruiters franchisees because it provides insight into the company's financial obligations and how they manage their debt. Understanding the term loan payable helps potential franchisees assess the financial stability and leverage of Management Recruiters. The term loan is part of the liabilities that Management Recruiters has, and it is important to consider this when evaluating the overall financial health of the company.
The term loan is a significant liability, and its management can impact the resources available for supporting franchisees. The fact that the term loan is categorized as Level 2 suggests that its valuation involves some degree of estimation and judgment based on market data. A prospective franchisee should consider the implications of this debt on Management Recruiters' ability to invest in franchisee support, technology, and other resources that contribute to the success of the franchise network.
In summary, the term loan payable of $3,065,903 as of December 31, 2021, is a key financial metric that provides transparency into Management Recruiters' financial structure. Potential franchisees should analyze this information in conjunction with other financial data to make an informed decision about investing in a Management Recruiters franchise.