In what year does the 7.25% note payable to State Bank mature 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 | |||
|---|---|---|---|---|---|
| 7.25% note payable to State Bank, secured | $ 25,157 | $ 43,680 | $ | - | |
| by equipment, payable at $1,760 including |
Source: Item 21 — Financial Statements (FDD pages 48–49)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the 7.25% note payable to State Bank, secured by equipment, matures in 2026. The note requires monthly payments of $1,760, which includes interest.
As of December 31, 2024, the outstanding balance on this note was $25,157, compared to $43,680 at the end of 2023. This indicates that Kitchen Solvers has been making payments on the note, reducing the principal balance. The long-term portion of the note payable, reflecting amounts due after one year, was $5,217 as of December 31, 2024.
For a prospective Kitchen Solvers franchisee, this information provides insight into the company's debt obligations and repayment schedule. Understanding the franchisor's financial commitments can help a franchisee assess the financial stability of Kitchen Solvers. It's also worth noting that the note is secured by equipment, which means the bank has a claim on those assets in case of default.