What is the 'Note' referring to in the context of the Bath Tune Up Secured Promissory Note?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
VALUE RECEIVED, the undersigned (hereinafter "Obligor"), hereby promises to pay to the order of KTU LLC, a Delaware limited liability company (hereinafter "Secured Party"), in such coin or cy of the United States which shall be legal tender in payment of all debts and dues, public and e, at the time of payment, the principal sum of U.S. $
ecured Promissory Note (the "Note") is the Secured Promissory Note referred to in, and is issued nt to, that certain Security Agreement entered into by Obligor in favor of Secured Party, dated as of ate with the date hereof (hereinafter, as amended from time to time, the "Security Agreement"), and tled to all of the benefits and security of the Security Agreement. All of the terms, covenants and ions of the Security Agreement are hereby made a part of this Note and are deemed incorporated in full. All capitalized terms used herein, unless otherwise specifically defined in this Note, shall be meanings ascribed to them in the Security Agreement.
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the 'Note' in the context of the Secured Promissory Note refers to the Secured Promissory Note itself. The document specifies that the Secured Promissory Note is the one referred to in, and issued pursuant to, a certain Security Agreement. This agreement is entered into by the Obligor (the franchisee) in favor of the Secured Party (KTU LLC), and it is dated as of the same date as the Secured Promissory Note.
The document further clarifies that the franchisee (Obligor) is entitled to all the benefits and security outlined in the Security Agreement. All terms, covenants, and conditions of the Security Agreement are incorporated into the Note. Any capitalized terms used within the Note, unless specifically defined within the Note itself, will have the meanings ascribed to them in the Security Agreement.
In essence, the Secured Promissory Note and the Security Agreement are legally intertwined documents. The Note outlines the promise to pay, while the Security Agreement provides the framework for securing that promise. A prospective Bath Tune Up franchisee should carefully review both documents to understand their obligations and the franchisor's rights.