What is the 'Start Date 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: | $ (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 cal |
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the 'Start Date of Loan' field specifies when the loan payments begin. The document outlines the structure of a promissory note, which includes fields for the principal amount financed, the duration of the loan in months, and the start date of the loan.
Specifically, the promissory note requires the debtor (franchisee) to make monthly payments beginning on a specified date, continuing until the principal and interest are paid off. The 'Start Date of Loan' is crucial because it determines when the franchisee's repayment obligations commence, impacting their cash flow and financial planning. The monthly payment amount is calculated at $25.00 per week for each franchised unit.
The note also specifies that payments are due on the same day of each calendar month, leading to a maturity date when all monies are paid without penalty. Failure to adhere to the payment schedule or any breach of the agreement terms can result in the entire debt becoming immediately due, potentially leading to the loss of the franchise.
Prospective Coffee News franchisees should carefully review the terms of the promissory note, including the 'Start Date of Loan', to fully understand their financial obligations and the potential consequences of default. Understanding these terms is essential for managing their investment and ensuring the long-term success of their Coffee News franchise.