When does Monicals Pizza's revolving line of credit with Busey Bank mature?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the company has a revolving line of credit with Busey Bank that matures in July 2026. As of December 31, 2024, the maximum borrowing limit for this line of credit was $1,000,000, while it was $1,500,000 as of December 31, 2023. The line of credit bears interest at the prime rate, which was 7.50% on December 31, 2024. The credit line is secured by a General Business Security Agreement, and no amounts had been drawn on it as of December 31, 2024, and December 31, 2023. There are no covenants associated with this line of credit.

This information is relevant to a prospective Monicals Pizza franchisee because it provides insight into the company's financial management and access to capital. The existence of a revolving line of credit suggests that Monicals Pizza has a financial safety net to manage its cash flow and operational needs. The fact that no amounts were drawn on the line of credit in the past two years could indicate financial stability and efficient management of resources.

The maturity date of the credit line is an important factor to consider. The fact that it matures in July 2026 suggests that Monicals Pizza will need to renew or refinance this credit line in the near future. A potential franchisee might want to inquire about the company's plans for renewing the credit line and whether any changes in terms or conditions are anticipated. Understanding the company's debt obligations and financial strategies can help a franchisee assess the overall financial health and stability of the Monicals Pizza franchise system.