What is the monthly installment amount for the $318,587 term loan for Aunt Millies Bakeries?
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's 2025 Franchise Disclosure Document, the $318,587 term loan is payable in monthly installments of $5,489. These payments began on July 1, 2023, and are scheduled to continue through June 1, 2028. The effective interest rate as of September 30, 2023, was 7.42%.
This information is relevant to prospective franchisees as it provides insight into the debt obligations Aunt Millies Bakeries has and the associated payment terms. Understanding the financial obligations of the franchisor can help a franchisee assess the financial stability and overall health of the company.
The term loan's interest rate and repayment schedule are important factors. The interest rate affects the total cost of borrowing, and the repayment schedule determines the monthly cash outflow required to service the debt. Franchisees may want to compare these terms to industry averages to evaluate whether they are favorable.
It is important to note that these debt arrangements are subject to change. Prospective franchisees should consult with Aunt Millies Bakeries directly to obtain the most current and detailed information regarding their financial obligations.