When does the $441,475 promissory note for Aunt Millies Bakeries become payable?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
edit facility from stockholders up to a maximum of approximately $7,700,000. The subordinated revolving credit facility does not have a maturity date and is therefore presented as current on the consolidated balance sheets. The subordinated revolving credit facility bears interest at 5.00% to 6.00%. Borrowings on the subordinated revolving credit facility were $2,740,852 and $2,452,450 as of September 30, 2023 and 2022, respectively.
The table below ref
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, a $441,475 promissory note is payable in monthly installments of $8,535 beginning November 1, 2022, and continuing through September 30, 2027. The interest rate as of September 30, 2023, was 6.00%. This indicates the loan has a fixed repayment schedule spanning approximately five years.
This information is relevant for prospective franchisees as it outlines the terms of a significant financial obligation. Understanding the repayment schedule, monthly installment amount, and interest rate is crucial for assessing the financial feasibility of the franchise. Franchisees need to factor these payments into their cash flow projections and ensure they can meet these obligations.
Additionally, the note can become immediately due and payable if the franchisee fails to make any payment when due, fails to comply with the Financing Security Agreement, if the Distribution Agreement is terminated, or upon the death of the borrower. The note can also become due if the franchisee fails to submit current personal financial information, quarterly business financial statements, and annual tax returns to the note holder. These conditions highlight the importance of maintaining financial stability and adhering to the terms of the agreements to avoid default and potential acceleration of the debt.