For Jersey Mikes, what happens on the [] year anniversary of the loan regarding the remaining principal and interest?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| a. | Beginning on the earlier of (i) the date sixty (60) days after the date the Restaurant first |
|---|---|
| opens for business or (ii) the [] month anniversary of the date of this Note (in each case | |
| provided Holder has made a disbursement of all or part of the Total Advance), Maker shall | |
| make monthly payments of principal and interest in the amounts set forth on Exhibit A | |
| until the [] year anniversary of the Loan, on which date all remaining principal and | |
| interest shall be paid in full. |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, regarding loan repayment, monthly payments of principal and interest are made until the [] year anniversary of the loan. On that anniversary date, all remaining principal and interest must be paid in full.
This means that a franchisee taking out a loan from Jersey Mike's will have a balloon payment due on the loan's anniversary. Franchisees need to be aware of this balloon payment and plan accordingly to have the funds available to pay off the remaining balance. This could involve refinancing the loan, saving a portion of their profits each month, or selling assets to cover the final payment.
It is important for prospective franchisees to fully understand the terms of any loan agreement, including the repayment schedule and any balloon payments. They should also consider the potential impact of these payments on their cash flow and profitability. Consulting with a financial advisor is recommended to ensure they are prepared for all financial obligations.