What is the effect of any waiver of any default under the Best Brains Promissory Note?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Each person liable on this Note in any capacity, whether as maker, endorser, surety, guarantor or otherwise, and any holder (collectively hereafter "Obligor"), waives the benefit of the homestead exemption and of all other exemptions available to him and also waives presentment, demand, protest, notice of dishonor and all other notices of every kind and nature to which he would otherwise be entitled under the applicable law. Each Obligor agrees that Holder may take any one or more of the following actions, on one or more occasions, whether before or after the maturity of this Note, without any notice to such Obligor, without any further consent to such actions, and without releasing or discharging such Obligor from liability on the Note: (a) any extension or extensions of the time of payment of any principal, interest or other amount due and payable under this Note; (b) any renewal of this Note, in whole or in part; (c) any full or partial release or discharge from liability under this Note of any other Obligor; (d) any waiver of any default under this Note or other agreement between the Lender and any Obligor relating to the indebtedness evidenced by this Note; or (e) any agreement with the Maker changing the rate of interest or any other term or condition of this Note.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, any person liable on the Best Brains Promissory Note, also known as an "Obligor", agrees that the Holder may waive any default under the note or other agreement between the Lender and any Obligor relating to the indebtedness evidenced by the note without releasing or discharging such Obligor from liability on the Note. This waiver can occur on one or more occasions, whether before or after the maturity of the Promissory Note, without any notice to such Obligor, and without any further consent to such actions.
In simpler terms, Best Brains retains the right to overlook a missed payment or breach of contract by the franchisee (Obligor) without it affecting the franchisee's overall responsibility to fulfill the terms of the Promissory Note. This means that even if Best Brains chooses not to act on a specific default, the franchisee remains liable for the full debt and all other obligations outlined in the agreement.
This clause protects Best Brains by allowing them flexibility in managing the loan. For a potential franchisee, this highlights the importance of adhering to all terms of the Promissory Note, as any leniency shown by Best Brains in one instance does not set a precedent or absolve the franchisee of their financial responsibilities. The franchisee should be aware that Best Brains can choose to enforce the terms strictly at any point, even after previously waiving a default.