What was the outstanding balance of the $318,587 term loan for Aunt Millies Bakeries as of 2024?
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, the $318,587 term loan had an outstanding balance of $261,632 in 2024. This loan is payable in monthly installments of $5,489, starting July 1, 2023, and continuing through June 1, 2028. The effective interest rate for this loan as of September 30, 2023, was 7.42%.
This information is relevant for prospective franchisees as it provides insight into the financial obligations and debt management of Aunt Millies Bakeries. Understanding the terms and outstanding balances of existing loans can help franchisees assess the financial stability of the company. It also gives them a sense of the interest rates and repayment schedules that Aunt Millies Bakeries is currently managing.
It's important to note that these figures represent a snapshot in time (2024) and that the outstanding balance of the loan will continue to decrease as payments are made. Additionally, interest rates and loan terms are subject to change, so franchisees should inquire about the most current financial information during their due diligence process.