What is the 'Note' referenced in the Bath Tune Up General Security Agreement used for?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| This General Security Agreement dated as of, is entered into by and |
|---|
| (collectively, "Pledgor") in favor of HFC KTU LLC, a |
| Delaware limited liability company ("Secured Party"). |
| WITNESSETH |
| WHEREAS, Pledgor has issued that certain Secured Promissory Note (the "Note") in favor of Secured |
| Party, dated as of, pursuant to which Secured Party has or is about to make |
| certain financial accommodations to Pledgor; and |
| WHEREAS, Secured Party has conditioned its providing said financial accommodations to Pledgor or |
| Pledgor's granting a security interest in substantially all of its assets in favor of Secured Party to secure |
| Pledgor's obligations to Secured Party under the Note; |
| NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and for |
| other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the |
| parties hereto agree as follows: |
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the 'Note' referenced in the General Security Agreement pertains to financial accommodations made by the Secured Party (HFC KTU LLC) to the Pledgor (the franchisee). The General Security Agreement is entered into by the Pledgor in favor of the Secured Party.
Specifically, the Secured Promissory Note, or "Note," is issued by the Pledgor in favor of the Secured Party. This Note is connected to financial accommodations that the Secured Party has either already made or is about to make to the Pledgor.
Bath Tune Up requires the franchisee to grant a security interest in their assets to the Secured Party. This security interest serves to secure the franchisee's obligations to the Secured Party under the terms of the Note. In simpler terms, the franchisee is pledging their assets as collateral to ensure they meet their financial obligations outlined in the Secured Promissory Note with HFC KTU LLC.