ITEM 10 FINANCING
|
Item
|
Source of
|
Down
|
Amount
|
Interest
|
Monthly
|
Prepay
|
Security
|
Liability
|
Loss
|
|
Financed
|
Financing
|
Payment
|
Financed
|
Rate
|
Payment
|
Penalty
|
Required
|
Upon Default
|
of
Legal Right on
Default
|
|
Initial
|
Us
|
50% or
|
Up to
|
12%,
|
$667.00,
|
None
|
Personal
|
The
|
None
|
|
Fee
|
|
more of
|
50% of
|
18% or
21 %1
|
$375.00
|
|
guaranty
|
promissory
|
|
|
|
|
the initial
|
the Initial
|
or
|
|
|
note you
|
j
|
|
|
|
fee.
|
Fee
|
|
$283.001
|
|
|
are
required to
sign
makes
your
owner
personally
liable for
all
amounts due
and owing.
|
|
Note 1- We currently offer three
financing options to qualified franchisees. We offer financing for up to
one-half of the initial fee, or $7500.00. You may finance less than this
amount, but under no circumstances will we offer financing for more than that
amount. Payment terms vary, and there are three options currently available.
Option 1. Your finance term will be 12
months at an interest rate of 12%. Payments will be '' $667.00/month, and your
total interest will be $496.96. If the principal amount of the note is less
than ■ $7500, then your payments will be lower, and your interest
payments less.
| Option 2. Your
finance term will be 24 months at an interest rate of 18%. Payments will be :
$375.00/month, and your total Interest will be $1,483.70. If the principal
amount of the note is less than I $7500, then your payments will be lower, and
your interest payments less.
i Option 3. You finance term will be 36
months at an interest rate of 21%. Payments will be $283.00/month, i and total
interest charges will be $2,666.34. If the principal amount of the note is less
than $7500, then ! your payments will be lower, and your interest payments
less.
The form of Promissory Note we
use is attached to this Offering Circular as Exhibit
We currently do not intend to
sell, assign or transfer any financing instrument to a third party, but reserve
the right to do so in the future. Since no third party financing is available
through us, we do not received any payment as a result of referring you to a
qualified lender.
