What is the 'Total Number of Payments' 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 'Total Number of Payments' field in the loan agreement specifies the number of payments a franchisee (referred to as the "Debtor") will make to Coffee News US [1] (the "Holder") to pay off the principal amount financed, finance charges, and the total cost of the loan. This figure helps define the loan's duration and repayment schedule. The franchisee will make payments on the same day of each calendar month until all principal, interest, and other charges are paid, up to the maturity date.
For a prospective Coffee News franchisee, understanding the 'Total Number of Payments' is crucial for budgeting and financial planning. It directly impacts the monthly payment amount and the overall loan repayment timeline. Knowing the total number of payments allows the franchisee to calculate the total interest paid over the life of the loan and assess the true cost of borrowing.
It is important to note that the loan agreement also stipulates conditions under which the entire debt becomes immediately due. These include failure to pay interest or principal, breach of any covenant in the agreement, or termination of the Coffee News Franchise Agreement. In such events, Coffee News has the right to realize the security granted, including the right to sell the franchise.
Prospective franchisees should carefully review the loan agreement and understand all terms and conditions, including the repayment schedule, potential penalties for late payments or default, and the implications of using the franchise as collateral. Consulting with a financial advisor is recommended to fully assess the financial obligations and risks associated with the loan.