What was the interest expense for Aunt Millies Bakeries for the year ending September 30, 2022?
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 of $95,238 beginning June 1, 2021. The term loan, revolving loan, and letters of credit was set to mature November 30, 2023. All unpaid principal and interest was due upon maturity.
In December 2022, the Company amended their Credit and Security Agreement ("Amended Credit and Security Agreement") whereby the term loan, revolving loan, and letters of credit maturities were extended to March 2025. The term loan monthly principal payments of $95,238 continue and any remaining outstanding borrowings are due upon maturity.
The term loan, revolving loan, and letters of credit bear interest at a variable rate for varying amounts based on LIBOR or a rate not to exceed the prime rate, both rates adjusted by a factor tied to a quarterly financial performance ratio. Availability under the revolving loan is subject to a borrowing base calculation and other restrictions common in such agreements. Borrowings under the letters of credit reduce availability of the revolving loan. The effective interest rate of the term loan and revolving loan approximated 5.67% and 5.59% at September 30, 2023 and 2022, respectively. There w
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the specific interest expense for Aunt Millies Bakeries for the year ending September 30, 2022, is not explicitly detailed within the provided excerpts. However, the document does include financial statements of Perfection Bakeries, Inc. which operates under the name Aunt Millie's.
While a precise figure for interest expense is not given, Note 5 discusses debt arrangements including a credit and security agreement, term loans, and a promissory note. The effective interest rate of the term loan and revolving loan approximated 5.59% at September 30, 2022. Additionally, in September 2022, the company entered into a $441,475 promissory note with SOBO Leasing, LLC with an interest rate of 6.00% at September 30, 2022.
To obtain the exact interest expense, a prospective franchisee should review the complete financial statements for the specified period or request this information directly from the franchisor. Understanding the interest expenses can help a franchisee assess the financial health and stability of Aunt Millies Bakeries.