What is the interest rate per year on the note payable with a finance company for Bambu?

According to Bambu's 2025 Franchise Disclosure Document, the company has a note payable with a finance company with an interest rate of 19.99% per year. The face amount of the note is $183,258, with payments to be made in 84 installments of $4,068. The note is collateralized by the assets of the company and the personal guaranty of the managing member of the company.

For a prospective Bambu franchisee, this information provides insight into the financial obligations and debt management of the company. Understanding the interest rates and terms of existing loans can help potential franchisees assess the financial stability and risk profile of Bambu. The high interest rate of 19.99% may indicate a higher risk or difficulty in securing financing under more favorable terms.

The fact that the note is collateralized by the company's assets and personally guaranteed by the managing member highlights the level of commitment and risk mitigation undertaken by the company's leadership. This could be seen as a positive sign, demonstrating the managing member's confidence in the business. However, it also means that the company's assets are encumbered, and the managing member has personally guaranteed the debt, which could have implications in case of financial distress.

Franchisees should consider this information in the context of the overall financial health of Bambu and the potential impact on the franchisor's ability to support its franchisees. It is advisable to inquire about the company's strategy for managing its debt and ensuring long-term financial stability.