How is interest calculated under the Best Brains Promissory Note?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
For and in consideration of good and valuable consideration, the undersigned promises to pay to the order of Best Brains, Inc. ["Holder"] at 135 E. Algonquin Road, Suite B, Arlington Heights, Illinois 60005, or at Holder's option, at such other place as may be designated from time to time by Holder, the amount stated above, together with interest at the rate of 0% per annum on the unpaid balance computed from the date provided above, payable as follows:
[insert repayment terms]
Interest under this Note will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the interest on the promissory note is calculated at a rate of 0% per annum on the unpaid balance from the date provided. The interest calculation is based on a 360-day year, which consists of twelve 30-day months. This means that even though a calendar year has 365 days, for the purpose of calculating interest on the Best Brains promissory note, each year is considered to have 360 days.
This method of calculation can affect the actual amount of interest paid over the term of the loan, although in this case the interest rate is 0%. Even though the interest rate is 0%, it is important for a prospective franchisee to understand how interest would be calculated if the rate were different. Using a 360-day year is a common practice in some financial calculations, but it's essential to be aware of it to accurately project costs and payments.
Prospective Best Brains franchisees should carefully review the terms of the promissory note and seek clarification from Best Brains regarding any questions or concerns about the interest calculation or repayment terms. Understanding these details is crucial for managing their financial obligations and ensuring compliance with the franchise agreement.