What was the interest expense for Aunt Millies Bakeries for the year ending September 30, 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
7,700,000. The subordinated revolving credit facility does not have a maturity date and is therefore presented as current on the consolidated balance sheets. The subordinated revolving credit facility bears interest at 5.00% to 6.00%. Borrowings on the subordinated revolving credit facility were $1,973,937 and $2,740,852 as of September 30, 2024 and 2023, respectively.
NOTE 5 - DEBT ARRANGEMENTS (Continued)
The table below reflects the Company's long-term debt at September 30, 2024 and 2023:
| 2024 | 2023 | ||
|---|---|---|---|
| $441,475 promissory note, payable in monthly installments of $8,535 beginning November 1, 2022 through September 30, 2027. The interest rate at September 30, 2023 was 6.00%. | $ 280,552 | $ | 363,421 |
| $8,000,000 term loan, payable in monthly installments of $95,238 beginning June 1, 2021 through April 30, 2027. The effective interest rate at September 30, 2023 was 5.67%. | 2,714,286 | 5,333,333 | |
| $318,587 term loan, payable in monthly installments |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, several debt arrangements contribute to the company's interest expenses. For the year ending September 30, 2023, the interest expenses are detailed for various loans.
Specifically, there was a $441,475 promissory note with an interest rate of 6.00% at September 30, 2023. Additionally, an $8,000,000 term loan had an effective interest rate of 5.67% at the same date. Two other term loans, one for $318,587 and another for $2,281,413, both carried an effective interest rate of 6.94% as of September 30, 2023.
The provided table reflects the company's long-term debt and associated values for 2023. The specific interest expense for Aunt Millies Bakeries is not explicitly stated as a single figure, but is embedded within the details of these various debt instruments. A prospective franchisee should carefully review these debt arrangements to understand the overall financial health and obligations of the company.