What are the monthly installment amounts 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. The first loan requires monthly installments of $38,605, which began on March 1, 2023, and matures in February 2028. The second loan requires monthly installments of $5,489, which began on July 1, 2023, and matures in June 2028. Both term loans bear fixed interest rates; the first at 6.43% and the second at 7.42%.
For a prospective Aunt Millies Bakeries franchisee, this information is relevant because it provides insight into the company's financial obligations and how they manage debt. Understanding the terms of these loans, such as the monthly payment amounts, interest rates, and maturity dates, can help a franchisee assess the financial stability of the franchisor.
It's important to note that these loans were entered into by the company itself and not directly by franchisees. However, the financial health of Aunt Millies Bakeries can impact its ability to support franchisees, invest in the brand, and maintain a competitive position in the market. Therefore, franchisees should consider these factors when evaluating the overall franchise opportunity.