How will the principal and interest be paid on the Caring Senior Service promissory note?

According to the 2025 Caring Senior Service Franchise Disclosure Document, the Partnership received a $200,000 loan from an entity owned and operated by a partner of the Partnership on August 16, 2023. The terms of the loan include 240 monthly payments of $1,208, which began on June 1, 2024. The note bears interest at 4% and is unsecured. As of December 31, 2024, the loan had a balance of $196,130.

This means that a portion of each $1,208 monthly payment goes towards paying down the principal amount of the loan, while the remaining portion covers the accrued interest at a rate of 4%. The loan is unsecured, meaning that there is no specific asset backing the loan. This could potentially make it riskier for the lender but may have allowed Caring Senior Service to obtain the loan more easily.

For a prospective Caring Senior Service franchisee, this information provides insight into the financial obligations and debt management practices of the Partnership. Understanding the terms and conditions of existing loans can help franchisees assess the financial stability and overall health of the company. It's also worth noting that the Maker has the right to prepay the outstanding principal balance of this Note, in whole or in part, at any time and from time to time, without premium or penalty.