For a Beverly Anns Cookie franchise, what does Osgood Bank financing cover?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Osgood Bank Financing
Osgood Bank may offer you Financing for the purchase of your GRM/GRT and initial inventory and equipment. You will be required to enter into a promissory note, guaranty, security agreement ("Promissory Note and Security Agreement") attached in Exhibit H to this Franchise Disclosure Document. The following table summarizes the Financing Osgood Bank may offer you:
SUMMARY OF OSGOOD BANK FINANCING OFFERED(1)
| Item Financed | One GRM/GRT and initial inventory pack | ||
|---|---|---|---|
| Amount Financed | The full purchase price of GRM/GRT (currently $137,451 to $144,451 for GRM and $85,753 - $89,753 for GRT ) less $20,000 down payment, plus purchase price of initial inventory pack (currently $10,995) | ||
| Down Payment | Balance of purchase price after Financing amount has been determined (not less than $20,000) | ||
| Term | 36 to 66 months (includes up to 6 months of deferments) | ||
| APR % | (A Credit) 8.99% (regardless of enrollment in deferments) or (B Credit) 10.49% to 10.99% (with deferments); up to 11.99% for first year only under interest-only plan (if allowed); rates may vary based on swap rates. | ||
| Monthly Payment | 36 to 66 monthly installments (includes up to 6 months of deferments); may vary according to amount financed | ||
| Prepayment Penalty | One percent (1%) for each year or partial year remaining on the loan | ||
| Security Required | Partner or shareholder and personal guarantee and pledge of the Franchise(2) | ||
| Liability Upon Default | Late penalty of the higher of 10% of the amount due or $25.00, as permitted by law; acceleration of amounts due; fees(3) | ||
| Loss of Legal Right On Default | Includes waiver of trial by jury and right to interpose any defense, set-off, or counterclaim of any nature or description(4) |
| Security Required | Personal Guaranty of Owner, Partner or Shareholder and pledge of the Franchise(3) |
|---|---|
| Liability Upon Default | Late penalty; acceleration of amounts due; fees(4) |
| Loss of Legal Right On | Waiver of trial by jury and right to interpose any defense, set-off, |
| Default | or counterclaim of any nature or description(5) |
| Fee(s) | $250 Documentation Fee. Amount can be financed in loan. |
Neither we nor any affiliate or agent receives any consideration for our franchisees' use of Osgood Bank for Financing.
Notes:
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- Osgood Bank reserves the right to change the terms, interest rate and amounts financed.
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- Payment structure will reflect the seasonal nature of the Beverly Ann's Business. During the offseason (up to three months) of every year, contract payments of $100/per month will be required.
Source: Item 10 — FINANCING (FDD pages 33–37)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Osgood Bank may offer financing to qualified franchisees for the purchase of a GRM/GRT (presumably a store or territory) and the initial inventory and equipment. To secure this financing, franchisees are required to enter into a Promissory Note and Security Agreement, detailed in Exhibit H of the FDD.
The amount financed by Osgood Bank covers the full purchase price of the GRM/GRT, which currently ranges from $137,451 to $144,451 for a GRM and $85,753 to $89,753 for a GRT, less a $20,000 down payment. Additionally, the financing covers the purchase price of the initial inventory pack, which is currently $10,995. The down payment required is the balance of the purchase price after the financing amount has been determined, but it cannot be less than $20,000.
The loan term ranges from 36 to 66 months, which may include up to 6 months of deferments. The APR (Annual Percentage Rate) varies based on credit score: an 'A Credit' score qualifies for 8.99% regardless of deferments, while a 'B Credit' score ranges from 10.49% to 10.99% with deferments. An interest-only plan, if allowed, may have an APR of up to 11.99% for the first year only, and rates may also fluctuate based on swap rates. Monthly payments will vary depending on the amount financed and are structured in 36 to 66 monthly installments, potentially including deferment periods. A prepayment penalty of one percent (1%) for each year or partial year remaining on the loan applies if the franchisee decides to pay off the loan early.
To secure the loan, Osgood Bank requires a personal guarantee from the owner, partner, or shareholder, as well as a pledge of the Beverly Anns Cookie franchise itself. In the event of default, a late penalty will be charged, which is the higher of 10% of the amount due or $25.00, as permitted by law. Default can also lead to the acceleration of all amounts due and the imposition of fees. Furthermore, the loan agreement includes a waiver of trial by jury and the right to interpose any defense, set-off, or counterclaim.