What is the fixed interest rate for the equipment term loans of 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. These loans are payable in monthly installments of $38,605 and $5,489, starting March 1, 2023, and July 1, 2023, respectively. These equipment term loans are scheduled to mature in February 2028 and June 2028, respectively.
The document specifies that these term loans bear fixed interest rates of 6.43% and 7.42%, respectively. This means that the interest rate will remain constant throughout the term of each loan, providing predictability for Aunt Millies Bakeries in terms of debt servicing.
For a prospective franchisee, understanding the interest rates on equipment loans is crucial, as it directly impacts the cost of financing necessary equipment. While this information pertains to Aunt Millie's Bakeries's debt arrangements, it gives insight into the kind of rates the company has secured in the past. A franchisee should consult with financial advisors to understand current market conditions and how they might affect their own financing options.