When is the maturity date for the note payable agreement that Canopy (associated with Bumble Roofing) entered into?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | $ 7,890,614 | $ 7,737,340 | $ 3,264,529 | | | | | | | |
NOTE 5 – NOTE PAYABLE
In conjunction with the equity purchase of Canopy further discussed in Note 7, Canopy entered into a note payable agreement with an entity that owns a minority interest in Canopy, in the principal amount of $525,000. The unpaid principal balance bears interest at a fixed rate of 10% compounded annually. All unpaid principal and interest is due in full on June 13, 2033, the matu
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, Canopy entered into a note payable agreement connected with an equity purchase. The principal amount of the note is $525,000, and it bears interest at a fixed rate of 10% compounded annually. The maturity date for the full unpaid principal and interest is June 13, 2033.
This means that Canopy, which is affiliated with Bumble Roofing, has a significant debt obligation that extends several years into the future. However, the note can be prepaid at any time before the maturity date without incurring any penalties.
For a prospective Bumble Roofing franchisee, this information provides insight into the financial obligations of Canopy, which could indirectly affect the franchise system. While the note payable is not directly the franchisee's responsibility, understanding the financial health and obligations of related entities can be valuable for assessing the overall stability and risk associated with the franchise.