When do the equipment term loans mature for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
of the revolving loan. There was no balance outstanding on the revolving loan at September 30, 2024 and 2023, respectively. There were no outstanding borrowings on the letters of credit at September 30, 2024 and 2023.
During September 2022, the Company entered into a $441,475 promissory note with a related party, SOBO Leasing, LLC,
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 entered into two equipment term loans in February 2023. The first loan requires monthly installments of $38,605 beginning March 1, 2023, and matures in February 2028. The second loan requires monthly installments of $5,489 beginning July 1, 2023, and matures in June 2028. These term loans carry fixed interest rates of 6.43% and 7.42%, respectively.
For a prospective Aunt Millies Bakeries franchisee, this information is relevant because it provides insight into the company's debt obligations and financial management. Understanding the terms of these loans, such as the maturity dates and interest rates, can help a franchisee assess the financial stability of the franchisor. This knowledge can be useful when evaluating the overall risk and potential success of investing in an Aunt Millies Bakeries franchise.
It is important to note that these loans are specific to the company and not directly related to the franchisee's financing. However, the franchisor's financial health can indirectly impact the franchisee's business. For example, a financially stable franchisor may be better positioned to provide support and resources to its franchisees. Therefore, reviewing the franchisor's debt arrangements is a part of the due diligence process.
Prospective franchisees should consider consulting with a financial advisor to fully understand the implications of the franchisor's debt arrangements. Additionally, it would be prudent to inquire with Aunt Millies Bakeries about any other outstanding debts or financial obligations that may not be explicitly detailed in the FDD.