What is the annual interest rate on the Caring Senior Service promissory note?

According to the 2025 Caring Senior Service FDD, the promissory note from a related party bears an annual interest rate of 4%. Specifically, Caring Senior Service received a $200,000 loan from an entity owned and operated by a partner of the Partnership on August 16, 2023. The terms of this note include 240 monthly payments of $1,208, which began on June 1, 2024. As of December 31, 2024, the loan balance was reported as $196,130.

This related-party transaction indicates that Caring Senior Service has access to financing from its partners, which can be a source of capital for the business. However, it's important to note that such transactions should be carefully scrutinized to ensure they are conducted at arm's length and on terms that are fair to all parties involved.

For a prospective franchisee, understanding the terms of any financing arrangements, including interest rates and repayment schedules, is crucial for assessing the financial health and stability of the franchise. While the 4% interest rate is specified for this particular related-party note, it's important to inquire about the terms of any other financing options that may be available to franchisees and to compare those terms with market rates to ensure they are competitive.