What is the prepayment penalty for a Beverly Anns Cookie loan?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 10 — FINANCING (FDD pages 33–37)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a franchisee obtains financing through Eagle Financial Services or Auxilior Capital Partners to purchase a GRM/GRT and initial inventory pack, a prepayment penalty will apply. The prepayment penalty is one percent (1%) for each year or partial year remaining on the loan.
For a prospective Beverly Anns Cookie franchisee, this means that if you decide to pay off your loan early, you will incur a penalty based on the remaining term of the loan. For example, if you have two and a half years left on your loan and decide to pay it off, the prepayment penalty would be 3% of the outstanding loan amount (1% for each full year and 1% for the partial year).
This type of prepayment penalty is fairly common in franchise financing. Franchisees should carefully consider the loan terms and their ability to repay the loan before taking on financing. Understanding the prepayment penalty is crucial for financial planning and assessing the overall cost of borrowing. Franchisees should also inquire about any options to reduce or eliminate the prepayment penalty, although such options may not be available.