When are the notes payable to related parties due through for Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Note payable to Morris Family Trust, a related party, payable in monthly | 147,574 | 154,618 | | installments of $1,551, including interest at 7.00%, due May 1, 2025, | | | | collateralized by the Company's assets. | | | | Economic Injury Disaster Loan (EIDL) to U.S. Small Business Association, | 300,000 | 300,000 | | payable in monthly installments of $731, including interest at 3.75%, | | | | due through June 2050, collateralized by the Company's assets. |
Notes to Consolidated Financial Statements
(b) To finance restaurant acquisitions and provide additional working capital, Capriotti's Sparks LLC, Capriotti's Meadows LLC, and Capriotti's Sierra, LLC entered into new financing transactions during 2019 with Zeus Holdings, LLC; Dream Big Holdings, LLC (a related-party lender); and JMS Separate Property Trust (a related-party lender), and received gross proceeds of approximately $860,000, of which $800,000 was used to purchase three new store locations, and the remaining proceeds were used for operating cash flow.
(a) To finance restaurant acquisitions and provide additional working capital, Capriotti's Craig, LLC and Capriotti's Huntridge, LLC entered into financing transactions with Zeus Holdings, LLC.
The remaining 50% of the note proceeds is due on the 15-year anniversary of the note, and the anniversary dates are February 2025 and August 2033.
To finance restaurant acquisitions, build out and provide additional working capital, Wing Zone Craig, LLC entered into financing transactions with JLJS Holdings, LLC, a related-party lender.
On the ten-year anniversary of the note, a balloon payment is due in an amount sufficient to pay the outstanding principal down to 50% of the original note proceeds.
The remaining 50% of the note proceeds is due on the 15-year anniversary of the note, and the anniversary date is June 2038.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, several notes payable to related parties have different due dates. One note payable to Morris Family Trust, a related party, is payable in monthly installments of $1,551, including interest at 7.00%, and is due May 1, 2025.
Additionally, the document mentions that Capriotti's Sparks LLC, Capriotti's Meadows LLC, and Capriotti's Sierra, LLC entered into financing transactions during 2019 with Dream Big Holdings, LLC and JMS Separate Property Trust, both related-party lenders. For Capriotti's Craig, LLC and Capriotti's Huntridge, LLC, which entered into financing transactions with Zeus Holdings, LLC, the remaining 50% of the note proceeds are due on the 15-year anniversary of the note, with anniversary dates in February 2025 and August 2033.
Wing Zone Craig, LLC also entered into financing transactions with JLJS Holdings, LLC, a related-party lender. For these notes, on the ten-year anniversary of the note, a balloon payment is due in an amount sufficient to pay the outstanding principal down to 50% of the original note proceeds. The remaining 50% of the note proceeds is due on the 15-year anniversary of the note, and the anniversary date is June 2038. These notes have varying structures for repayment, including quarterly payments based on a percentage of the borrower's EBITDA, balloon payments, and potential extensions, making it crucial for prospective franchisees to fully understand the terms and obligations associated with each note.