What is the monthly installment amount for the $8,000,000 term loan for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Routes held for sale | $ | 1,096,406 | $ | 1,720,086 |
|---|---|---|---|---|
| Deferred revenue | 2,098,000 | 1,399,000 | ||
| (Losses)/Gains recognized from sale of territories and delivery trucks | (89,851) | (170,920) | ||
| Interest income from distributor notes receivable (reflected in | ||||
| other income on the consolidated income statements) | 913,501 | 485,497 | ||
| Company repurchase obligation for territories previously sold | 2,268,021 | 440,000 | ||
| Interest rate on notes receivable – distributor routes | 8.75 | 5% to 9.75% | 8.7 | 5% to 9.75% |
(Continued)
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 May 2024, 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 April 2027.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the $8,000,000 term loan requires monthly installments of $95,238. These payments began on June 1, 2021.
The loan was initially set to mature on November 30, 2023, with all unpaid principal and interest due at that time. However, the Credit and Security Agreement was amended in December 2022, extending the maturity date to March 2025.
Another amendment occurred in May 2024, further extending the maturity date to April 2027. The monthly principal payments of $95,238 continued under the amended agreement, with any remaining outstanding borrowings due upon maturity. The effective interest rate at September 30, 2023 was 5.67%.