Does the Best Brains Promissory Note allow for renewals?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
For and in consideration of good and valuable consideration, the undersigned promises to pay to the order of Best Brains, Inc. ["Holder"] at 135 E. Algonquin Road, Suite B, Arlington Heights, Illinois 60005, or at Holder's option, at such other place as may be designated from time to time by Holder, the amount stated above, together with interest at the rate of 0% per annum on the unpaid balance computed from the date provided above, payable as follows:
[insert repayment terms]
Interest under this Note will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
The undersigned represents and warrants to Holder that the loan evidenced by this Note is being made for business, commercial or investment purposes. The undersigned may prepay this Note, in whole or in part, without penalty, at any time.
The undersigned agrees to pay all attorney fees and other costs and expenses that Holder may incur in connection with the collection or enforcement of this Note or the preservation or disposition of any collateral for the payment of this Note.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
Based on the 2025 Best Brains Franchise Disclosure Document, the excerpt provided discusses the terms of a Promissory Note, specifying the payment location, interest rate (0%), and repayment terms. It also confirms that the loan is for business, commercial, or investment purposes and allows for prepayment without penalty. However, the document does not include any information regarding the renewal of the promissory note.
Because the FDD excerpt does not mention renewals, prospective Best Brains franchisees should directly ask the franchisor about the possibility of renewing the promissory note.
Specifically, a potential franchisee should inquire under what conditions, if any, the promissory note can be renewed, and what the terms of renewal would be. This information is crucial for understanding the long-term financial obligations and flexibility associated with the loan.