What is the 'Duration of Loan' field used for in this Coffee News loan agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
nd correct. | (the ed the foregoing Schedule B as | | My Commission expires: | Notary Public |
SCHEDULE C PROMISSORY NOTE (An alternative option to SDHCEDULE B)
| $ | , 20 | |
|---|---|---|
| 04401 | [trade in section pay to the order of Coffee News US [1] (the "Holder"), the sum of | address of the Franchisee] doing business name of his business] (the "Debtor") SA, Inc. at 120 Linden St., Bangor, Maine f Dollars sipal") and such other finance charges, in |
| 1. | The payments shall be made as follows | : |
| Principal Amount Financed: Duration of Loan: Start Date of Loan: | $ (mont |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the 'Duration of Loan' field specifies the length of the loan in months. This is part of the promissory note that outlines the terms of financing between the Coffee News franchisee (Debtor) and Coffee News US, Inc. (Holder). The promissory note includes key financial details such as the principal amount financed, the start date of the loan, the monthly payment amount, the total number of payments, the principal amount to be paid, finance charges, and the total cost of the loan.
This information is crucial for a prospective Coffee News franchisee because it defines the repayment schedule and overall cost of borrowing. The franchisee can use the 'Duration of Loan' along with other loan details to understand their monthly financial obligations and the total amount they will pay over the life of the loan. This allows for informed financial planning and assessment of the affordability of the franchise.
It's important to note that the promissory note also includes provisions for securing the loan with the franchisee's licensed rights to their territory. If the franchisee fails to make payments or breaches any terms of the agreement, Coffee News has the right to realize the security and sell the franchise. Therefore, understanding the 'Duration of Loan' and all other terms of the loan agreement is essential to avoid potential default and loss of the franchise.