What is the prepayment premium for a Beverly Anns Cookie loan in year one?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be permitted to prepay your Loan if they simultaneously pay a premium as follows: for each year or partial year remaining: (A) 3% in year one of the Loan, (B) 2% in year two of Loan, and (C) 1% in year three of the Loan; provided, that there will be no premium thereafter.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, franchisees are permitted to prepay their loan, but will be charged a premium for doing so. If a franchisee chooses to prepay their loan in the first year, they will be charged a premium of 3% of the loan amount.
In year two, the prepayment premium decreases to 2% of the loan amount. By year three, the premium is further reduced to 1%. After the third year of the loan, there is no prepayment premium charged to Beverly Anns Cookie franchisees.
This policy encourages franchisees to maintain their loan for at least three years, as prepaying earlier incurs a higher cost. Franchisees should consider these prepayment premiums when making financial decisions about their Beverly Anns Cookie business and loan management.