When is the final payment due 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 f |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the final payment for the $155,100 note payable with a bank is due in March 2026. This note is 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 note is collateralized by accounts receivable.
This information is crucial for prospective franchisees as it outlines the terms of a significant financial obligation that Pearce Bespoke has. Understanding the repayment schedule, the interest and fees involved (13% fixed fee on the principal), and the collateral required (accounts receivable) is essential for assessing the financial health and stability of the company.
For a potential franchisee, this indicates the level of debt Pearce Bespoke carries and how it manages its finances. It's important to consider how this debt might impact the franchisor's ability to support its franchisees, invest in the brand, or navigate economic downturns. Furthermore, the reliance on accounts receivable as collateral suggests the importance of franchisees' sales and payment processing to the franchisor's financial stability.
Prospective franchisees should further investigate the details of this note payable, including the interest rate, any potential refinancing options, and the specific terms of the collateral agreement. Understanding these factors will provide a more complete picture of the franchisor's financial situation and the potential risks and rewards of investing in a Pearce Bespoke franchise.