When was the note payable paid off for Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
the trailing 12 months' EBITDA of the borrower or 120% of the cost of the original investment used to build or acquire the store owned by the borrower plus defined renovation costs.
- (c) This loan is guaranteed with up to 228,000 of newly issued shares of voting stock in Capriotti's Sandwich Shop, Inc., valued at $1.25 per share. The interest rate for the issued note was 8% with a maturity date of December 31, 2025.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, several loan agreements and promissory notes are detailed, each with its own terms and maturity dates. One note, issued to finance restaurant acquisitions, build-out, and provide working capital, carries an 8% interest rate and has a maturity date of December 31, 2025. Another note, a subordinated promissory note in the amount of $1,000,000, was entered on December 28, 2020, and is due on the earlier of the fifth anniversary of the agreement or the consummation of a change in ownership.
For the first note, quarterly payments of 50% of the borrower's EBITDA are required until the instrument is fully repaid or redeemed. Beginning in the fifth year after issuance, the lender is entitled to an additional 25% of the borrower's EBITDA until 50% of the original loan proceeds are recovered. A balloon payment is due on the tenth anniversary to reduce the outstanding principal to 50% of the original amount, with the remaining 50% due on the fifteenth anniversary, specifically June 2038.
These financial details are crucial for prospective Capriottis Sandwich Shop franchisees to understand the company's debt obligations and repayment schedules. While the FDD outlines the terms of these notes, it does not explicitly state when any specific note payable was fully paid off. A potential franchisee should seek clarification from Capriottis Sandwich Shop regarding the payoff dates and current status of these and other outstanding notes to gain a clearer picture of the company's financial health and future obligations.