What is the repayment schedule 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 of $5,489 beginning in July 1, 2023 through June 1, 2028. The effective interest rate as of September 30, 2023 was 7.42%. |
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. The payments began on July 1, 2023, and 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 financial obligations Aunt Millie's Bakeries has undertaken. Understanding the repayment schedule and interest rate on existing loans can help a franchisee assess the financial stability of the franchisor. This can also be used as a benchmark when franchisees seek financing for their own operations.
It's important to note that these figures reflect the loan status as of a specific date (September 30, 2023) and are subject to change. Prospective franchisees should inquire about the current financial standing of Aunt Millie's Bakeries and any updates to their loan obligations during their due diligence process.