What is the amount of the Class A-2 Notes that were issued to Benjamin Franklin Plumbing?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
in full by the anticipated repayment date.
As of December 31, 2022, the Company had withdrawn $91,330 which remained outstanding as of December 31, 2022. During the year ended December 31, 2023, the Company withdrew an incremental $22,000 and repaid $7,000 resulting in an outstanding balance of $106,330 as of December 31, 2023. During the year ended December 31, 2024, the Company withdrew an incremental $2,000 resulting in an outstanding balance of $108,330 as of December 31, 2024.
As a result of the 2022 transaction, the Company incurred costs of $2,528, of which $1,476 were recorded as contra-liability to debt as of December 31, 2022 and $1,052 were recorded within other assets as they relate to
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 FDD, the Class A-2 Notes were issued to Benjamin Franklin Plumbing in the amount of $425,000. These notes have an anticipated repayment date in July 2028 and a legal final maturity date in July 2051.
Interest on the Class A-2 Notes is due quarterly, and the agreement requires that three months' worth of interest and commitment fees for the Class A-2 Notes, Class A-1 2021 Notes, and Class A-1 2022 Notes be kept on deposit in an interest reserve account at all times. The interest rate for the A-2 notes is 3.734% per annum, payable quarterly.
In addition to interest payments, principal payments are also required on a quarterly basis. These payments amount to 0.25% of the initial principal amount of the Class A-2 Notes, unless a non-amortization test is satisfied as defined in the agreement governing the notes. This means that unless certain financial conditions are met, Benjamin Franklin Plumbing is obligated to make these principal payments each quarter.