What is the scheduled maturity for the long-term debt of Aunt Millies Bakeries in 2028?
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 has two equipment term loans that mature in 2028. These loans were entered into during February 2023. One loan is payable in monthly installments of $38,605 beginning March 1, 2023, and matures in February 2028. The other loan is payable in monthly installments of $5,489 beginning July 1, 2023, and matures in June 2028. The interest rates on these loans are fixed at 6.43% and 7.42%, respectively.
For a prospective Aunt Millies Bakeries franchisee, this information provides insight into the company's debt obligations and repayment schedules. Knowing the maturity dates of these loans can help franchisees assess the financial stability of the company and its ability to meet its long-term debt obligations. This is a standard financial disclosure, allowing potential investors to evaluate the risk associated with the franchise.
It is important to note that these are just two specific loans, and Aunt Millies Bakeries may have other debt arrangements with different maturity dates. The FDD also mentions other debt arrangements, such as a promissory note with SOBO Leasing, LLC, due September 30, 2027, and a Credit and Security Agreement, which was amended to extend maturities to April 2027. Reviewing all debt arrangements is crucial for a comprehensive understanding of the company's financial obligations.
Prospective franchisees should consult with a financial advisor to fully understand the implications of Aunt Millies Bakeries's debt structure and how it might affect the franchise system's overall financial health and stability. Understanding the company's debt obligations is a key part of assessing the risk and potential rewards of investing in an Aunt Millies Bakeries franchise.