Can the Promissory Note with Best Brains be prepaid, and if so, is there a penalty?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to Best Brains' 2025 Franchise Disclosure Document, a franchisee may prepay the Promissory Note, in whole or in part, at any time. This provides flexibility for franchisees who may experience increased cash flow and wish to reduce their debt obligations early.
Specifically, the document states that the loan evidenced by the Promissory Note is for business, commercial, or investment purposes. This is a standard clause in loan agreements to ensure compliance with lending regulations. The interest on the note is calculated on a 360-day year consisting of twelve 30-day months, which is a common method for simplifying interest calculations.
Importantly, the FDD explicitly states that there is no penalty for prepaying the note. This is a significant benefit for franchisees, as some loan agreements include prepayment penalties that can add to the cost of paying off the debt early. Best Brains also specifies that the franchisee is responsible for covering all attorney fees and other costs associated with the collection or enforcement of the note, or the preservation or disposition of any collateral securing the note.