When is the Brain Balance note payable to the Small Business Administration due?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Gross Carrying Amount | | Accumulated Amortization | | Website and development | $ 610,283 | $ | 443,420 | $ 564,860 | $ | 400,601 | $ | 418,681 | $ | 373,996 | | assets | | | | | | | | | | |
Amortization expense for such assets totaled $49,819, $26,605, and $7,327 for the years ended December 31, 2024, 2023, and 2022, respectively.
Note 7 - Long-term Debt
Long-term debt at December 31 is as follows:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Note payable and accrued interest |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the note payable to the Small Business Administration (SBA) is due in September 2050. The note carries an interest rate of 3.75 percent, with monthly payments of $731 that began in September 2021. The note is secured by all assets of the company.
The balance of the note payable to the Small Business Administration as of 2024 was $142,569, in 2023 it was $146,084, and in 2022 it was $153,591. The current portion of the note payable less current portion was $3,363 in 2024, $3,240 in 2023, and $3,120 in 2022. The long-term portion of the note was $139,206 in 2024, $142,844 in 2023, and $150,471 in 2022.
For a prospective Brain Balance franchisee, this information provides insight into the financial obligations and debt management of the company. Understanding the terms and repayment schedule of the SBA note can help franchisees assess the financial stability and long-term planning of Brain Balance. It is also important to note that the note is secured by all assets of the company, which could have implications for franchisees in certain financial scenarios.