What is the 'maturity date' defined as in the Coffee News loan 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 loan agreement is defined as the date by which the debtor must have paid all principal, interest, and any other charges outlined in the note. The debtor will make payments every month until this date. This means that the 'maturity date' represents the final deadline for the franchisee to fully repay the loan.
This is a standard term in loan agreements, ensuring both the lender (Coffee News USA, Inc.) and the borrower (the franchisee) are clear on when the debt must be fully satisfied. Franchisees should pay close attention to the loan's duration, monthly payment amount, total number of payments, and the final maturity date to manage their finances effectively.
Failure to meet the payment obligations by the maturity date can result in penalties, legal action, or even the loss of the franchise, as Coffee News retains the right to realize upon the security granted in the Promissory Note, including selling the franchise. Therefore, understanding and adhering to the loan terms is crucial for maintaining a healthy financial standing and a successful franchise operation.