What are the fixed interest rates for the two equipment term loans 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. These loans are payable in monthly installments of $38,605 and $5,489, starting March 1, 2023, and July 1, 2023, respectively. The loans mature in February 2028 and June 2028, respectively.
The document specifies that the equipment 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 and terms of existing company debt can offer insights into the financial health and stability of Aunt Millies Bakeries. While these loans are not directly related to the franchise opportunity, they provide context for the overall financial obligations of the company. It is important to note that these rates and terms apply to the company's debt and not necessarily to any financing a franchisee might obtain.