What is the maturity date for the DevCo Tempe Loan that Best Western has with UMB Bank?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
23, respectively. $0.8 million and $0.8 million of construction loan interest was expensed in interest and dividend income, and interest and other expense, net in the Consolidated Statements of Revenues and Expenses for the years ended November 30, 2024 and 2023, respectively.
The Company is required to maintain certain financial and operational covenants. At November 30, 2024 and 2023, the Company was in compliance with all covenants.
DevCo Tempe
In October 2020, DevCo Tempe entered into the Tempe Loan with UMB Bank. Under terms of the Tempe Loan, DevCo Tempe can request advances up to $15.3 million. For the period November 1, 2020 through October 31, 2
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the DevCo Tempe Loan that Best Western has with UMB Bank has a maturity date of October 2, 2027. This loan was established in October 2020, allowing DevCo Tempe to request advances up to $15.3 million.
Initially, from November 1, 2020, to October 31, 2023, only interest payments on the outstanding principal were due monthly. However, starting November 1, 2023, the loan structure changed. From that date until the maturity date, both principal and interest are due and payable. The amount is determined by UMB Bank to ensure the loan is amortized over a 25-year period.
The remaining principal balance is due on October 2, 2027. This information is relevant for prospective franchisees as it provides insight into Best Western's financial obligations and how they manage their debt. Understanding the terms and maturity dates of such loans can help franchisees assess the financial stability of the parent company.