What is the 'maturity date' in the context of a Coffee News loan, as defined in this agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ | , 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: | $ (months) | |
| Monthly Payment ($25.00/week for each franchised unit): | $ | |
| Total Number of Payments: Principal Amount to be paid: Finance Charges to be paid: Total Cost of the loan: | $ $ $ | |
| month descri contin | ning on, 20 [ n until he/she have paid all of the princ ibed above that he/she may owe under t | on the day of each calendar month Debtor will make these payments every sipal and interest and any other charges this Note. In no event shall any monies 0, which is called the "maturity date." ne without penalty. |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the 'maturity date' in the context of a Coffee News loan is defined as the date on which the debtor must have paid all principal, interest, and any other charges they owe under the promissory note. The debtor will make payments every month until this date.
In simpler terms, the maturity date is the final deadline for a Coffee News franchisee to repay their loan in full. This includes not only the original amount borrowed (the principal) but also any interest and additional fees that have accrued over the loan term. Franchisees need to be aware of this date and ensure they make all required payments on time to avoid defaulting on the loan.
Missing the maturity date can have serious consequences for a Coffee News franchisee. The franchisor can take action to recover the outstanding debt, potentially including seizing assets or terminating the franchise agreement. Therefore, understanding and meeting the obligations of the loan, including the maturity date, is crucial for maintaining a healthy financial standing and a successful franchise operation.