What collateral is used for the $155,100 note payable with a bank for Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Deferred Commissions | Non-refundable Franchise Fees | ||
|---|---|---|---|
| Year ending December 31: | |||
| 2025 | $ | 79,960 | $ 139,500 |
| 2026 | 79,960 | 90,000 | |
| 2027 | 79,960 | 90,000 | |
| 2028 | 79,960 | 90,000 | |
| 2029 | 79,960 | 90,000 | |
| Thereafter | 301,884 | 314,298 | |
| $ | 701,684 | $ 813,798 | |
| NOTE 3 – NOTES PAYABLE | |||
| Notes payable consist of the following at December 31, | 2024 | ||
| Note payable with a bank. Face amount of $150,000, payable in 54 | in July 2025. | $ 97,508 | |
| weekly installments of $3,528 including a fixed fee of 27% of the | |||
| face amount of the note. Final payment is due | |||
| Collateralized by the assets | |||
| of the Company. | |||
| Note payable with a bank. Face amount of $155,100, payable in | in | ||
| monthly minimum payments of $19,818 every two months or 25% | |||
| of accounts receivable presented for payment processing including | |||
| a fix fee of 13% of the principal amount. Final |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a note payable with a bank, with a face amount of $155,100, is collateralized by accounts receivable. The minimum monthly payments are $19,818, due every two months, or 25% of accounts receivable presented for payment processing, including a fixed fee of 13% of the principal amount. The final payment is due in March 2026.
This means that Pearce Bespoke has secured this loan by pledging its accounts receivable as security. If Pearce Bespoke fails to meet the payment obligations, the bank has a legal claim on the accounts receivable to recover the outstanding debt.
For a prospective franchisee, this information provides insight into the financial obligations and debt structure of Pearce Bespoke. Understanding the collateral used for the company's debts can help franchisees assess the financial stability and risk associated with investing in a Pearce Bespoke franchise.