What was the amount of Management Recruiters' term loans 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 figure represents the amount Management Recruiters owed on its term loans at the end of the fiscal year. This is categorized as a Level 2 liability.
This information is relevant for prospective franchisees as it provides insight into Management Recruiters' financial obligations and debt management. A significant term loan payable could indicate a higher level of financial leverage, which may impact the company's ability to support its franchisees or invest in future growth.
It is important to note that this figure only represents the term loan payable at a specific point in time and does not reflect the overall financial health or stability of Management Recruiters. Prospective franchisees should review the complete financial statements and consult with a financial advisor to assess the potential risks and opportunities associated with investing in a Management Recruiters franchise.