What is the interest rate on the unpaid principal balance for the Beverly Anns Cookie loan note?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
INTEREST.** Interest will accrue on the unpaid Principal balance of this Note at the rate of 6.000 percent (Interest Rate).
- **A.
Post-Maturity Interest.** After maturity or acceleration, interest will accrue on the unpaid Principal balance of this Note at 18.000 percent until paid in full.
- **B.
Maximum Interest Amount.** Any amount assessed or collected as interest under the terms of this Note will be limited to the maximum lawful amount of interest allowed by applicable law.
Amounts collected in excess of the maximum lawful amount will be applied first to the unpaid Principal balance.
Any remainder will be refunded to me.
- **C.
Accrual.** Interest accrues using an Actual/365 days counting method.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the interest rate on the unpaid principal balance of the loan note is 6.000 percent. This interest begins accruing from January 31, 2022, and continues until the note matures or the obligation is accelerated.
However, after maturity or acceleration of the loan, the interest rate increases significantly to 18.000 percent until the loan is paid in full. This post-maturity interest rate highlights the importance of adhering to the payment schedule to avoid incurring substantially higher interest charges.
The document also specifies that the interest charged will not exceed the maximum lawful amount allowed by applicable law. Any amount collected above this legal maximum will first be applied to the unpaid principal balance, and any remaining overage will be refunded to the borrower. This provision protects the borrower from excessive interest charges that may violate legal limits. Interest accrues using an Actual/365 days counting method.