When does the $8,000,000 term loan for Aunt Millies Bakeries become payable?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
-|------|-------------| | Deferred revenue | | 1,399,000 | | 1,438,000 | | (Losses)/Gains recognized from sale of territories and delivery trucks | | (170,920) | | 101,929 | | Interest income from distributor notes receivable (reflected in | | | | | | other income on the consolidated income statements) | | 485,497 | | 507,885 | | Company repurchase obligation for territories previously sold | | 440,000 | | 219,000 | | Interest rate on notes receivable – distributor routes | 8.75 | % to 9.75% | 8.75 | 5% to 9.75% |
NOTE 5 - DEBT ARRANGEMENTS
The Company had a Credit and Security Agreement ("Credit and Security Agreement") with a commercial lender. The Credit and Security Agreement provided a term loan of $8,000,000, advances in the form of a revolving loan up to $25,000,0000, and letters of credit up to $2,500,000. The term loan required monthly principal payments o
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the company had an $8,000,000 term loan that required monthly principal payments of $95,238 beginning June 1, 2021. Initially, this loan, along with revolving loans and letters of credit, was set to mature on November 30, 2023, at which point all unpaid principal and interest would be due.
However, in December 2022, Aunt Millies Bakeries amended their Credit and Security Agreement, extending the maturity date of the term loan, revolving loan, and letters of credit to March 2025. The monthly principal payments of $95,238 continued, with any remaining outstanding borrowings due upon the new maturity date.
Therefore, based on the amended agreement, the $8,000,000 term loan was scheduled to become fully payable in March 2025. This means that any outstanding balance on the loan, after the regular monthly payments, would be due at that time. Prospective franchisees should be aware of the company's debt obligations, as they can impact the financial stability of the franchise system.