What is the collateral for the Truist loan obtained by Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
gust 2029.
Notes Payable - Truist loan in the amount of $46,742 is payable beginning January 2021 and payable in 72 monthly payments of $711 including interest of 2.99%. Proceeds were for purchase of vehicle which is listed as collateral. Final payment expected Dec
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a Truist loan in the amount of $46,742 was obtained. The loan is payable beginning January 2021, with 72 monthly payments of $711, which includes interest at a rate of 2.99%. The final payment is expected in December 2026.
The proceeds from this loan were specifically used for the purchase of a vehicle. This vehicle is explicitly listed as the collateral for the Truist loan. This means that if Burneys Sweets More were to default on the loan, Truist Bank would have the right to seize the vehicle to recoup their losses.
For a prospective franchisee, this information provides insight into the financial obligations and asset management of Burneys Sweets More. It is common for businesses to secure loans for asset acquisition, and specifying the asset as collateral is a standard lending practice. This arrangement protects the lender while allowing the business to acquire necessary assets. Franchisees may want to inquire about the company's overall debt management and financing strategies to better understand the financial health of the franchisor.