Who is the obligor for the Bath Tune Up Secured Promissory Note?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| TITLE OF AGREEMENT | EXHIBIT/ SCHEDULE # | SIGNED BY |
|---|---|---|
| Franchise Agreement, State Addendum and Schedules | Exhibit A | You and us |
| Personal Covenant and Guarantee | Schedule 1 | All people having direct or indirect “Control”* over Franchisee or a direct or indirect beneficial ownership interest in Franchisee, including the spouse of Franchisee. |
| Consent to Transfer and Assumption of Franchise | Exhibit H | You, new franchisee and us |
| (includes Release of Claims) | ||
| Veteran’s Addendum to Franchise Agreement | Exhibit I | You (only if you are a veteran) and us |
| Secured Promissory Note | Exhibit J | You (Obligor) |
| General Security Agreement | Exhibit K | You (Pledgor) and us |
| Addendum to Franchise Agreement – Two Territories | Exhibit L | You (only if you purchase two territories) and us |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, the obligor for the Secured Promissory Note is the franchisee.
The FDD includes a table that lists various agreements a franchisee may sign. Exhibit J is the Secured Promissory Note, and the table indicates that the franchisee, identified as "You (Obligor)," is the party signing this note. This means the franchisee is responsible for fulfilling the obligations outlined in the Secured Promissory Note.
In essence, as the obligor, the franchisee is the one taking on the debt and promising to repay it according to the terms specified in the note. This arrangement is typical in franchise systems where the franchisee may need financing to cover initial franchise fees, startup costs, or other business-related expenses. The franchisor may extend credit to the franchisee, documented by the promissory note, to facilitate the establishment of the new Bath Tune Up location.