What are the maturity dates 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. The first loan requires monthly payments of $38,605 beginning on March 1, 2023, and it matures in February 2028. The second loan requires monthly payments of $5,489 beginning on July 1, 2023, and it matures in June 2028. The term loans bear fixed interest rates of 6.43% and 7.42%, respectively.
For a prospective franchisee, this information is relevant because it provides insight into the financial obligations and debt management of Aunt Millies Bakeries. Understanding the company's debt structure, including the terms and maturity dates of its loans, can help a franchisee assess the financial stability of the franchisor. This can be a factor in evaluating the overall risk and potential success of investing in an Aunt Millies Bakeries franchise.
It is important to note that these loans were entered into by the company itself and are not direct obligations of the franchisees. However, the financial health of the franchisor can indirectly impact franchisees, as it can affect the level of support, resources, and brand investment that Aunt Millies Bakeries can provide. Therefore, reviewing the franchisor's debt arrangements is a part of due diligence.