What is the annual interest rate on the note payable agreement that Canopy Lawn Care entered into?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accounts payable | $ 2,557,614 | $ 3,779,901 | $ 1,915,947 | |
|---|---|---|---|---|
| Accrued payroll, bonuses, and other | ||||
| personnel related expenses | 1,421,800 | 1,453,037 | 638,805 | |
| Earnout provisions | 1,838,485 | 2,267,663 | - | |
| Roofing estimated closed job costs | 847,457 | - | - | |
| Other | 1,225,258 | 236,739 | 709,777 | |
| $ 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 maturity dat
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Canopy Lawn Care entered into a note payable agreement related to an equity purchase. The principal amount of the note is $525,000. The note carries a fixed interest rate of 10%, compounded annually.
The entire unpaid principal and interest are due on June 13, 2033, which is the maturity date of the note. However, Canopy Lawn Care has the option to prepay the note at any time before the maturity date without incurring any penalties.
For a prospective franchisee, this information provides insight into Canopy Lawn Care's financial obligations and its relationship with entities holding minority interests. Understanding the terms of this note payable can help franchisees assess the financial stability and management of Canopy Lawn Care.