What was the amount of interest expense for Mrcool for the year ended December 31, 2024?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
| Gross profit | 100,802 | 0 |
|---|---|---|
| Operating expenses | ||
| Dues and subscriptions | 924 | 1,186 |
| Insurance | 1,080 | 98 |
| Advertising | 28,730 | 779 |
| Tax expense | 1,440 | 3,813 |
| Professional fees | 13,139 | 9,622 |
| Management fee (note H) | 70,792 | 0 |
| Computer supplies | 80,674 | 1,697 |
| Travel | 44,701 | 447 |
| Rent | ||
| 318 | 0 | |
| Freight and shipping | 52,184 | 0 |
| Total operating expenses | 293,982 | 17,642 |
| Operating loss | (193,180) | (17,642) |
| Other income (expense): | ||
| Interest income | 73 | 0 |
| Bank fees | (243) | (90) |
| Inter |
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the company accrued $0 of interest on loans for the year ended December 31, 2024. In contrast, for the year ended December 31, 2023, Mrcool accrued $870 in interest. This indicates a significant decrease in interest expenses from 2023 to 2024.
This information is relevant for prospective franchisees as it provides insight into Mrcool's financial management and debt obligations. A decrease in interest expenses could suggest improved financial stability or a reduction in borrowing. Franchisees may want to inquire about the reasons for this change and understand how Mrcool manages its debt.
It's important to note that while the company accrued $0 interest on loans, Mrcool also maintains a $500,000 bank line of credit with a variable interest rate based on the Term SOFR Rate, which was 8.375% as of December 31, 2024. This line of credit is secured by all business assets and expires on June 19, 2025. Franchisees should consider the implications of this line of credit and how it might affect Mrcool's financial performance and stability.