What is the face amount of the note payable with a bank that Pearce Bespoke has?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company has two notes payable with a bank as of December 31, 2024. The first note has a face amount of $150,000, and is payable in 54 weekly installments of $3,528, which includes a fixed fee of 27% of the face amount of the note. The final payment is due in July 2025, and it is collateralized by the assets of the company. The outstanding balance for this note as of December 31, 2024, was $97,508.
The second note payable has a face amount of $155,100, payable in monthly minimum payments of $19,818 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, and is collateralized by accounts receivable. The outstanding balance for this note as of December 31, 2024, was $68,874.
It is important for a prospective Pearce Bespoke franchisee to understand the company's debt obligations, as these obligations could impact the financial stability of the company and its ability to support its franchisees. Reviewing the notes payable can provide insight into the company's financial management and its ability to meet its financial obligations. Franchisees should consider how these debts might affect Pearce Bespoke's capacity to invest in franchisee support, marketing, or new product development.