Is there a prepayment penalty for paying the Aunt Millies Bakeries loan in full?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, a borrower has the right to prepay their loan in full without incurring a prepayment penalty. The FDD specifies that the borrower can make this full payment at any time, along with any accrued but unpaid interest. This clause provides financial flexibility for Aunt Millies Bakeries franchisees, allowing them to pay off their debt early if they have the means to do so, without being penalized for it.

This benefit is fairly common in lending agreements, as it encourages borrowers to manage their finances responsibly and reduces the lender's risk over the long term. However, it is important for prospective Aunt Millies Bakeries franchisees to understand the terms and conditions related to prepayment, such as how the payments are applied and whether there are any specific procedures to follow.

Additionally, the FDD mentions that in the event of a partial prepayment equal to or greater than 25% of the outstanding principal, the monthly payment amount may be reset by the note holder, with written acceptance from the borrower. This is another important factor for franchisees to consider, as it could impact their ongoing payment obligations and cash flow management.