What is the interest rate per annum on the Promissory Note to 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.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the promissory note carries an interest rate of 0% per annum on the unpaid balance. This interest is calculated from the date provided in the note.
This means that a franchisee who signs a promissory note with Best Brains will not accrue any interest charges on the outstanding balance. The repayment terms for the principal amount will be detailed separately in the note.
It's important for prospective franchisees to carefully review the repayment terms outlined in the promissory note to understand the schedule and conditions for paying back the principal amount, even though no interest will be charged. Franchisees should also be aware of any potential fees or penalties associated with late payments or defaults, as these are separate from the interest rate.