For Bath Tune Up, are the representations and warranties considered cumulative to any other representations or warranties given to the Secured Party?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
All representations and warranties contained in this Agreement or any of the other Financing Agreements shall survive the execution and delivery of this Agreement and shall be deemed to have been made again to Secured Party on the date of any additional borrowing or other credit accommodation under any amendment, restatement, modification or substitution of the Note and shall be conclusively presumed to have been relied on by Secured Party regardless of any investigation made or information possessed by Secured Party. The representations and warranties set forth herein shall be cumulative and in addition to any other representations or warranties which Pledgor shall now or hereafter give, or cause to be given, to Secured Party.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the representations and warranties within the agreement or other financing agreements are designed to endure beyond the initial execution of the agreement. These warranties are reaffirmed with each additional borrowing or credit extension, essentially being remade to the Secured Party each time. This holds true regardless of any investigations conducted or information already held by the Secured Party.
Furthermore, the representations and warranties provided by the Pledgor are cumulative. This means that they are in addition to any other representations or warranties that the Pledgor has given or will give to the Secured Party. This layering of assurances strengthens the Secured Party's position by providing multiple levels of protection and recourse.
For a prospective Bath Tune Up franchisee, this clause indicates a comprehensive and ongoing commitment to the accuracy and reliability of the information provided to the financing entity. It reduces the risk for the lender, as any misrepresentation can trigger recourse, and it emphasizes the importance of due diligence and transparency on the part of the franchisee when seeking financing.