Where can additional information on the note payable issued by Beehive Homes be found?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
$1,645,65 7 |
Note D - Shareholders' Equity Transactions
On October 31, 2023, the Company's two founding shareholders entered into an agreement for the Company to repurchase the common stock of one of the shareholder's which was equal to 50% of the total outstanding stock of the corporation. At December 31, 2023 of the 850 shares of common stock issued and outstanding, the Company repurchased 425 shares for a total of $1,406,076 by issuing a note payable. The note payable has a face value of $1,750,000. At December 31, 2023, the present value of the future cash flow for the note payable is $1,406,076, with an unamortized discount of $343,924. At December 31, 2024, the present value of the future cash flow for the note payable is $1,289,991, with an unamortized discount of $276,000. As part of the agreement, the Company also agreed to pay the premiums of a life insurance policy owned by the former shareholder for a period of ten years. The former shareholder is the beneficiary of the policy and the amount will be treated as compensation to them over the period of the policy. Additional information on the note payable can be found within Note C to these
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, additional details regarding the note payable can be located in Note C of the financial statements. The note payable was issued on October 31, 2023, when Beehive Homes repurchased 425 shares of common stock, representing 50% of the total outstanding stock, from one of its founding shareholders for $1,406,076. The note's face value was $1,750,000.
As of December 31, 2023, the present value of the future cash flow for the note payable was $1,406,076, with an unamortized discount of $343,924. By December 31, 2024, the present value had decreased to $1,289,991, with an unamortized discount of $276,000. In addition to the note payable, Beehive Homes agreed to cover the premiums for a life insurance policy owned by the former shareholder for ten years, with the former shareholder as the beneficiary. These premium payments will be treated as compensation to the former shareholder over the policy's term.
Prospective franchisees should review Note C carefully to understand the terms of the note payable, including interest rates, payment schedules, and any associated collateral. Understanding the financial obligations of Beehive Homes can provide insight into the company's financial health and stability. This information is crucial for making an informed investment decision, as it reflects the company's past financial transactions and commitments.