What is the interest rate on the Closet Storage Concepts note payable to Bank of West?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
d by the Company's sole stockholder and is collateralized by the assets of the Company. As of December 31, 2022, $139,994 was outstanding on the line of credit.
NOTE 7 LONG‐TERM DEBT OBLIGATIONS
| The following is a summary of long‐term debt obligations at December 31, 2022: | |
|---|---|
| Note payable to GM Financial. The loan is payable over 72 months at $493 per | 981 |
| month at 4.9% interest and matures February 2023. The loan is collateralized by | |
| a | |
| vehicle. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, information regarding the interest rate on a note payable to Bank of West is available in the summary of long-term debt obligations at December 31, 2022. The loan was payable over 84 months at $1,456 per month with a 5.34% interest rate. The loan matured in August 2024 and was collateralized by equipment. The loan could be voluntarily prepaid after the initial 12 payments.
This information is relevant to prospective franchisees as it provides insight into the types of debt obligations Closet Storage Concepts has undertaken. Understanding the interest rates, payment terms, and collateral involved in these obligations can help a franchisee assess the financial health and risk profile of the company. While this specific loan matured in August 2024, it gives an example of the terms Closet Storage Concepts has previously agreed to.
It is important to note that this information is from December 31, 2022. Prospective franchisees should inquire about the current debt obligations of Closet Storage Concepts, including any outstanding loans with Bank of West or other financial institutions, to gain a more up-to-date understanding of the company's financial situation. This will allow for a more accurate assessment of the company's financial stability and its ability to support its franchisees.