What is the fixed monthly installment amount for the U.S. Small Business Administration note for Exit, and when did these installments begin?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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Notes payable consist of the following:
December 31 2024 2023 2022 Exit Realty Corp. International Note dated April 29, 2016 and subsequently amended $ 320,074 $ 338,744 $ 507,496 on September 12, 2023 for franchise territory in Wisconsin, payable in monthly installments ranging from $2,381 to $3,844 through Septembe
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Upper Midwest Realty, Inc. d.b.a. Exit Realty Upper Midwest has a U.S. Small Business Administration (SBA) note. This note, dated May 16, 2020, was intended to alleviate economic injury caused by a disaster.
The note is payable in monthly installments of $731. These installments commenced on November 18, 2022, and are scheduled to continue through November 2052. The interest rate on this note is 3.75% per annum.
Prospective franchisees should be aware that the FDD mentions that the previous deferment on the SBA loan may result in a balloon payment at the end of the loan term. It would be prudent for potential franchisees to inquire about the specifics of this potential balloon payment and factor it into their financial planning.