What is the interest rate on the note payable to the financial institution for Lees Famous Recipe?
Lees_Famous_Recipe Franchise · 2025 FDDAnswer from 2025 FDD Document
5.25%, secured by the mortgaged property | 1,207,410 | 1 ,222,515 |
WISCONSIN
| Note payable to financial institution, monthly payments | | | |---|---|---| | through November 2027 of $6,847, starting January 2023, | | | | including interest at 5.25%, secured by the mortgaged property | 1,207,410 | 1 ,222,515 | *****Signed a Area Development Agreement
**Signed a Franchise Agreement but has not yet opened as of the issuance date
EXHIBIT H
STATEMENT OF PROSPECTIVE FRANCHISEE
EXHIBIT H
STATEMENT OF PROSPECTIVE FRANCHISEE
Please review each of the following questions carefully and provide honest and complete responses to each question:
| Note payable to financial institution, monthly payments | ||
|---|---|---|
| through November 2027 of $10,617, starting January 2023, | ||
| including interest at 5.3%, secured by the mortgaged property | 1,860,324 | 1 ,885,284 |
| 39,310,812 | 3 1,093,940 | |
| Less current maturities | 799,979 | 8 15,582 |
Source: Item 23 — RECEIPTS (FDD pages 70–287)
What This Means (2025 FDD)
According to the 2025 Lees Famous Recipe FDD, there are multiple notes payable to financial institutions, each with slightly different terms. One note requires monthly payments of $10,617 through November 2027, starting in January 2023, and includes interest at a rate of 5.3%. This note is secured by mortgaged property. Another note requires monthly payments of $6,361 through November 2027, starting January 2023, and includes interest at a rate of 5.25%. This note is also secured by the mortgaged property. Additional notes payable to financial institutions also carry an interest rate of 5.25%. These notes have monthly payments of $6,317 and $6,847, respectively, through November 2027, starting in January 2023, and are secured by mortgaged property.
For a prospective franchisee, this information is relevant because it provides insight into the financial obligations and debt structure of Lees Famous Recipe. Understanding the interest rates and terms of these notes can help a franchisee assess the financial health of the company and its ability to meet its debt obligations. It also highlights the importance of secured debt, as these notes are backed by mortgaged property, which could have implications for the company's assets in the event of financial distress.
It is important to note that these notes payable are obligations of Lees Famous Recipe itself, not direct obligations of the franchisees. However, the financial stability of the franchisor is crucial for the long-term success of the franchise system. Franchisees should consider these factors as part of their due diligence process to evaluate the overall risk and potential rewards of investing in a Lees Famous Recipe franchise.