How are capitalized terms defined in the Secured Promissory Note for Bath Tune Up?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
tely upon any acceleration of the Obligations pursuant to Section 6.2 of the Security Agreement or upon the purchase by Obligor of another BATH TUNE-UP® franchise from any source. | | payme | or may prepay this Note in whole or in part from time to time without penalty, but any principal and must be accompanied by all interest then accrued, if any. Any partial payments will be applied to rge the principal sum payments in the inverse order in which any payments would otherwise become dditionally, Obligor may terminate the Security Agreement by paying in full all the Obligations due ured Party under this Note and as otherwise due to Secured Party under the Security Agreement, in | | discha | | | due. A | | Upon the occurrence of an Event of Default, Secured Party shall have all of the rights and remedies set forth in Section 6.2 of the Security Agreement.
cash.
Time is of the essence of this Note. To the fullest extent permitted by applicable law, Obligor, for itself and its legal representatives, successors and assigns, expressly waives presentment, demand, protest, notice of dishonor, notice of non-payment, notice of maturity, notice of protest, presentment for the purpose of accelerating maturity, diligence in collection, and the benefit of any exemption or insolvency laws.
Wherever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or remaining provisions of this Note. No delay or failure on the part of Secured Party in the exercise of any right or remedy hereunder shall operate as a waiver thereof, nor as an acquiescence in any default, nor shall any single or partial exercise by Secured Party of any right or remedy preclude any other right or remedy. Secured Party, at its option, may enforce its rights against any collateral securing this Note without enforcing its rights against Obligor, any guarantor of the indebtedness evidenced hereby or any other property or indebtedness due or to become due to Obligor.
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Exhibit J outlines the Secured Promissory Note for Bath Tune Up franchisees. However, the document excerpts provided do not include the specific definitions of capitalized terms used within the note. The excerpts include information such as the rights of the Secured Party upon an Event of Default, waivers by the Obligor, and governing law.
Without the definitions, it's difficult to fully understand the obligations and rights outlined in the Secured Promissory Note. For example, the document mentions "Event of Default," "Secured Party," and "Obligor," but their precise meanings are not detailed in the provided excerpts. Understanding these terms is crucial for a franchisee to comprehend their responsibilities and the franchisor's recourse in case of non-compliance.
Prospective Bath Tune Up franchisees should carefully review the full Secured Promissory Note (Exhibit J) within the FDD and seek clarification from the franchisor regarding any undefined capitalized terms. Consulting with a legal professional is also advisable to fully understand the implications of the agreement before signing.