When is the final payment due for 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 final payment for the first note, which had a face amount of $150,000, is due in July 2025. This note was payable in 54 weekly installments of $3,528, which includes a fixed fee of 27% of the face amount. The assets of Pearce Bespoke collateralize this note.
The final payment for the second note, which had a face amount of $155,100, 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. Accounts receivable collateralize this note.
For a prospective franchisee, understanding the franchisor's debt obligations can provide insight into the financial stability of Pearce Bespoke. Reviewing the terms of these notes payable, such as interest rates, payment schedules, and collateral, can help assess the franchisor's financial commitments and their potential impact on the franchise system. It is important to note that these figures represent the company's obligations as of December 31, 2024, and may have changed since then.