What is the collateral for the Acura loan under Notes Payable for Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
ES PAYABLE
Notes Payable - Acura loan in the amount of $37,300 is payable beginning August 2024 and payable in 60 monthly payments of $686 including interest of 3.9%. Collateral is vehicle purchased. Final payment expected A
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the collateral for the Acura loan under Notes Payable is the vehicle purchased with the loan. The Acura loan has a principal amount of $37,300, with payments beginning in August 2024. The loan is structured with 60 monthly payments of $686, which includes interest at a rate of 3.9%. The final payment is expected in August 2029.
This information is relevant to potential Burneys Sweets More franchisees as it provides insight into the company's financial obligations and how they manage debt. Understanding the collateral involved in loans helps franchisees assess the risk associated with the franchisor's financial stability. In this case, the vehicle purchased serves as collateral, indicating a secured loan arrangement.
Prospective franchisees should consider the implications of Burneys Sweets More's debt management practices. While secured loans can be a common way for businesses to finance assets, it's important to evaluate the overall debt level and repayment schedule to ensure the franchisor's financial health. This information, combined with other financial disclosures in the FDD, can help franchisees make an informed decision about investing in the franchise.