What is the due date for Better Blend's note payable to Better Blend Nutrition, LLC?

According to Better Blend's 2024 Franchise Disclosure Document, the company has a note payable to Better Blend Nutrition, LLC, which is a related party under common control. The note payable is non-interest bearing and unsecured. The full amount of the note is due to be paid in 2026.

Since the note is non-interest bearing, Better Blend is not accruing interest expense on this related-party debt. The fact that it is unsecured means that Better Blend Nutrition, LLC does not have a specific claim on any of Better Blend's assets in the event of default.

For a prospective franchisee, this related-party transaction is important to note. It indicates financial relationships between Better Blend and its affiliates, which franchisees should understand to assess the company's financial stability and potential conflicts of interest. It is fairly common for franchise companies to have related-party transactions, but the franchisee should understand the terms and amounts to ensure they are reasonable.

While the FDD specifies the note is to be paid in full in 2026, it does not specify the exact date in 2026 when the note is due. A prospective franchisee may want to inquire with Better Blend about the specific due date.