What is the maturity date for the Tempe Loan associated with DevCo Tempe and the Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
in compliance with all covenants.
DevCo Tempe
In October 2020, DevCo Tempe entered into the Tempe Loan with UMB Bank. Under terms of the Tempe Loan, DevCo Tempe can request advances up to $15.3 million. For the period November 1, 2020 through October 31, 2023, interest on the outstanding principal balance of the Tempe Loan was due and payable monthly. Beginning November 1, 2023, through the maturity date of October 2, 2027, principal and interest are due and payable in an amount determined by UMB to be sufficient to amortize the outstanding principal balance of the Tempe Loan over a twenty-five (25) year period. The outstanding principal balance of this
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, the Tempe Loan, which DevCo Tempe entered into with UMB Bank in October 2020, has a maturity date of October 2, 2027. DevCo Tempe can request advances up to $15.3 million under the terms of this loan.
For the period between November 1, 2020, and October 31, 2023, only interest payments on the outstanding principal were due monthly. However, starting November 1, 2023, and continuing until the October 2, 2027 maturity date, both principal and interest are due and payable. The amount is determined by UMB to be sufficient to amortize the outstanding principal balance over a 25-year period.
The FDD specifies that the outstanding principal balance of the Tempe Loan is due and payable on the maturity date. This means that Bw Premier Collection franchisees should be aware of this debt obligation and its repayment schedule, as it could impact the financial stability of DevCo Tempe and, by extension, Bw Premier Collection.