How must monthly installments be paid for the Clear Pest Pros promissory note?

According to the 2025 Clear Pest Pros Franchise Disclosure Document, monthly installment payments are first applied to cover the interest accrued, with the remaining balance then being applied to reduce the principal amount of the note. This means that in the initial months of repayment, a larger portion of the payment will go towards interest, and a smaller portion will go towards reducing the actual amount borrowed.

This type of payment structure is common in lending agreements, as it allows the lender to recoup the interest earned on the loan over time. For a Clear Pest Pros franchisee, understanding this payment structure is crucial for budgeting and financial planning. It's important to recognize that the amount of principal being paid down each month will increase as the loan progresses and the interest portion decreases.

Additionally, the promissory note allows for prepayment, but the excerpt does not specify if there are any penalties or fees associated with paying off the note early. Franchisees should inquire about any potential prepayment penalties to fully understand their options for managing the debt. Understanding the terms of the promissory note is essential for franchisees to manage their financial obligations effectively and make informed decisions about their business finances.