How are principal and interest payments to be made for the Caring Senior Service note?

According to the 2025 Caring Senior Service FDD, 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 note 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 balance was $196,130.

This means that a portion of each $1,208 payment goes towards paying down the principal amount of the loan, while the remaining portion covers the interest accrued at a rate of 4%. The loan is structured with fixed monthly payments, making it easier for the Partnership to budget and manage its cash flow. The fact that the loan is unsecured means that it is not backed by any specific collateral, which could increase the risk for the lender but may have allowed the Partnership to obtain more favorable terms.

The loan's maturity schedule, detailing the amounts due in future periods, is included in the notes to the financial statements. This schedule provides transparency and allows the Partnership to plan for future debt obligations. For a prospective franchisee, this information highlights the types of financing arrangements Caring Senior Service has utilized and the associated terms, which can be useful for benchmarking and understanding potential financing options for their own franchise.

It is important to note that this loan is from a related party, which means that the terms may not be the same as those available from an independent lender. However, the disclosure provides valuable insight into the financial structure and obligations of the Caring Senior Service Franchise Partnership.