What is the interest rate on the note payable to State Bank for Kitchen Solvers?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
itution in the amount of $100,000. Outstanding advances on this line of credit totaled $0 at December 31, 2024, 2023 and 2022.
Note 6 Long-Term Notes Payable
Long-term notes payable consists of the following:
| 2024 | 2023 | 2022 |
|---|
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the company has a note payable to State Bank with an interest rate of 7.25%. As of 2024, the outstanding balance on this note was $25,157, reduced from $43,680 in 2023.
The note is secured by equipment and requires monthly payments of $1,760, which includes both principal and interest. The note is scheduled to mature in 2026. This information is relevant for prospective franchisees as it provides insight into Kitchen Solvers' debt obligations and financial management.
Understanding the terms of Kitchen Solvers' existing debt can help a franchisee assess the financial stability of the franchisor. The presence of a secured note indicates that Kitchen Solvers has access to financing, but it also carries the obligation of regular payments. The interest rate of 7.25% provides a benchmark for evaluating the cost of borrowing in the current economic environment.