What were the borrowings on the line of credit for Aunt Millies Bakeries in 2022?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
There was $0 and $5,704,555 outstanding on the revolving loan at September 30, 2023 and 2022, respectively. There were no outstanding borrowings on the letters of credit at September 30, 2023 and 2022.
During September 2022, the Company entered into a $441,475 promissory note with a related party, SOBO Leasing, LLC
Borrowings on the subordinated revolving credit facility were $2,740,852 and $2,452,450 as of September 30, 2023 and 2022, respectively.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the company had a Credit and Security Agreement with a commercial lender. This agreement provided a term loan of $8,000,000, a revolving loan up to $25,000,000, and letters of credit up to $2,500,000.
At September 30, 2022, the outstanding borrowings on the revolving loan were $5,704,555. There were no outstanding borrowings on the letters of credit at that time. Additionally, in September 2022, Aunt Millies Bakeries entered into a $441,475 promissory note with SOBO Leasing, LLC, a related party.
In February 2023, the company entered into two equipment term loans. Borrowings on the subordinated revolving credit facility from stockholders were $2,452,450 as of September 30, 2022. These debt arrangements can impact a franchisee, as the financial health of the franchisor can influence the support and resources available to franchisees.