What is the monthly installment amount for the note payable to a bank for Bens Soft Pretzels?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
areholder, | | | | | | maturing September 2024 | $ | - | $ 4,966 | $ 11,332 |
December 31, 2024, 2023, and 2022
NOTE 6 – LONG-TERM DEBT (CONTINUED)
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Note payable to a bank, payable in monthly installments of $559, including interest at a fixed rate of 4.240%, collateralized by a vehicle and guaranteed by a shareholder, maturing March 2025 | 1,665 | 8,151 | 14,369 |
| Note payable to a bank, payable in monthly installments of $2,200, including interest at a fixed rate of 6.750%, collateralized by a building and guaranteed by a shareholder, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Bens Soft Pretzels has two notes payable to banks. One note is payable in monthly installments of $559, which includes interest at a fixed rate of 4.240%. This note is collateralized by a vehicle, guaranteed by a shareholder, and matures in March 2025. The outstanding balance on this note as of December 31, 2024, was $1,665. In 2023, the balance was $8,151, and in 2022, it was $14,369.
The second note is payable in monthly installments of $2,200, including interest at a fixed rate of 6.750%. This note is collateralized by a building and guaranteed by a shareholder, maturing in February 2028. As of December 31, 2024, the balance on this note was $228,717. In 2023, the balance was $239,033.
It is important to note that these liabilities reflect obligations of Bens Soft Pretzels as the franchisor, not debts that a franchisee would necessarily assume. However, this information gives prospective franchisees insight into the financial obligations of the franchisor. Understanding the franchisor's debt obligations can be useful in assessing the overall financial health and stability of Bens Soft Pretzels.