On July 1, 2020, Ed Wynne signed an agreement to operate as a franchisee of Kwik Foods, Inc., for an initial franchise ee of $900,000. Of this amount, $300,000 was paid when the agreement was signed, and the balance is payable in our equal annual payments of $150,000 beginning July 1,2021 . The agreement provides that the down payment is not refundable and no future services are required of the franchisor. Wynne's credit rating indicates that he can borrow noney at 8% for a loan of this type