What is the anticipated repayment date for the Class A-2 Notes for 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As of December 31, 2022, the Company had withdrawn $91,330 which remained outstanding as of December 31, 2022.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 for Benjamin Franklin Plumbing were issued in the amount of $425,000. The anticipated repayment date for these notes is July 2028, with a final legal maturity date of July 2051.
Interest on the A-2 notes accrues at a rate of 3.734% per annum and is due quarterly. Additionally, principal payments of 0.25% of the initial principal amount of the Class A-2 Notes are payable quarterly, unless a non-amortization test is satisfied as defined in the governing agreement.
For a prospective Benjamin Franklin Plumbing franchisee, understanding the repayment terms of these notes is crucial as it reflects the financial obligations of the franchisor. The franchisee should be aware of how these obligations might impact the franchisor's financial stability and its ability to support the franchise network. It is also important to note the conditions under which principal payments may be altered based on the non-amortization test.