When does Mrcool's bank line of credit expire?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
s and has one active franchisee, and another recently signed franchisee as of December 31, 2024. The Company's activities are subject to significant risks and uncertainties, including failing to secure franchisees.
D LINE OF CREDIT
The C
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the company maintains a $500,000 bank line of credit. The interest is payable monthly and is variable based on the Term SOFR Rate. As of December 31, 2024, the rate was 8.375%.
The line of credit is secured by all of Mrcool's business assets. This means that if Mrcool fails to meet the obligations of the credit line, the bank has a legal claim to the company's assets.
The bank line of credit expires on June 19, 2025. This means Mrcool will need to renew the line of credit, find a new lender, or operate without this line of credit after this date. For a prospective franchisee, this indicates the company's current reliance on credit and the need to monitor its financial stability and plans for financing beyond the expiration date.