What was the face amount of the 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, the company had two notes payable with a bank as of December 31, 2024. The first note had a face amount of $150,000, payable in 54 weekly installments of $3,528, which includes a fixed fee of 27% of the face amount. The final payment for this note is due in July 2025, and it is collateralized by the assets of the company. The outstanding balance on this note as of December 31, 2024, was $97,508.
The second note payable had 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 for this note is due in March 2026, and it is collateralized by accounts receivable. The outstanding balance on this note as of December 31, 2024, was $68,874.
These notes payable represent significant financial obligations for Pearce Bespoke. Prospective franchisees should consider the implications of these debts on the company's financial stability and its ability to support its franchisees. Understanding the terms of these notes, such as the interest rates, repayment schedules, and collateral, is crucial for assessing the financial health of the franchisor.