When does the note payable to a financial institution mature for Amerispec Inspection Services?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
is collateralized by substantially all of the Company's assets. Interest varies with the bank's prime rate, which was 7.38% and 8.15% at December 31, 2024 and 2023, respectively, and is payable monthly.
Note 9. Notes Payable
The Company's notes payable consisted of the following as of December 31:
| 2024 | 2023 | |
|---|---|---|
| Note payable to a financial institution of $5,250,000, monthly | $ 5,280,232 | $ - |
| interest payments at 12% cash rate and 1.5% paid-in-kind ("PIK"), | ||
| due upon maturity July 1, 2029. | ||
| Note payable of $1,200,000, due in quarterly payments of $42,857, | 1,200,000 | - |
| including inte |
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to the 2025 FDD, Amerispec Inspection Services has a note payable to a financial institution of $5,250,000. This note requires monthly interest payments at a 12% cash rate, along with a 1.5% paid-in-kind (PIK) rate. The note is scheduled to mature on July 1, 2029.
Additionally, Amerispec Inspection Services has other notes payable. One is for $1,200,000, requiring quarterly payments of $42,857, including a 6% per annum interest, and matures in November 2031. Another note is for $950,000, with yearly payments of $475,000, maturing in October 2026. Finally, there's a $350,000 note, due in yearly payments of $175,000, including a 3% per annum interest, maturing in July 2026.
These figures provide a snapshot of Amerispec Inspection Services's debt obligations as of the end of 2024. Prospective franchisees should consider these liabilities when assessing the financial health of the franchisor. Understanding the maturity dates and payment terms of these notes can offer insight into the company's financial stability and its ability to support its franchisees.