What is the interest rate per annum on the Promissory Note for Best Brains?
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.
The undersigned represents and warrants to Holder that the loan evidenced by this Note is being made for business, commercial or investment purposes. The undersigned may prepay this Note, in whole or in part, without penalty, at any time.
The undersigned agrees to pay all attorney fees and other costs and expenses that Holder may incur in connection with the collection or enforcement of this Note or the preservation or disposition of any collateral for the payment of this Note.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, the promissory note carries an interest rate of 0% per annum on the unpaid balance. This interest is computed from the date provided in the note. The interest calculation is based on a 360-day year, consisting of twelve 30-day months.
This means that a Best Brains franchisee who signs a promissory note will not accrue any interest charges on the outstanding balance. This could represent a significant benefit for the franchisee, reducing the overall cost of borrowing from Best Brains.
However, the franchisee should carefully review the repayment terms outlined in the note, as these terms will dictate the schedule and amounts of payments required, even with a 0% interest rate. Additionally, the franchisee is responsible for all attorney fees and other costs associated with the collection or enforcement of the note, or the preservation/disposition of any collateral securing the note.