What is the borrower unconditionally promising to pay to the lender for the Beverly Anns Cookie loan?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
TERMS AND CONDITIONS
- **1.
LOAN.** For Value received, the Borrower hereby unconditionally promises to pay to the order of Lender the amounts described above (the "Loan Payments").
In the event we become aware of adverse credit information about you and/or the Guarantor(s) after you signed this Loan and prior to our acceptance of this Loan, we may at our sole discretion, cancel this Loan.
ONCE WE ACCEPT THIS LOAN, YOU MAY NOT CANCEL IT DURING THE FULL LOAN TERM.
You agree to be bound by all the terms of this Loan from the date you execute this Loan ("Effective Date") until you have paid the Loan in full.
- **2.
DELIVERY, ACCEPTANCE OF EQUIPMENT AND COMMENCEMENT OF THE LOAN.** Borrower hereby certifies to Lender that the Equipment has been duly ordered, an invoice for the Equipment has been issued and the Equipment will be delivered to the location where it will be used.
Borrower acknowledges that signature of this document confirms that Equipment will be properly installed and in good working order and constitutes an unconditional acceptance of the Equipment upon delivery and hereby authorized the commencement of the Loan ("Commencement Date").
- **3.
PAYMENT.** You agree to pay us the Loan Payments when each payment is due.
If we designate the Loan Payments to begin later than the Commencement Date, you will pay interim interest on the Principal Amount from the Commencement Date until the first Loan Payment due date.
Interim interest shall be equal to the pro rata portion of the daily equivalent of the Loan interest rate.
Payment is due whether or not you receive an invoice from us.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the borrower unconditionally promises to pay the lender the amounts described in the loan agreement, referred to as the "Loan Payments." The borrower agrees to be bound by all the terms of the loan from the date they execute the loan until they have paid the loan in full.
Beverly Anns Cookie franchisees are obligated to pay the Loan Payments when each payment is due. If the Loan Payments are set to begin later than the Commencement Date, the franchisee will pay interim interest on the Principal Amount from the Commencement Date until the first Loan Payment due date. This interim interest is calculated as the pro rata portion of the daily equivalent of the Loan interest rate.
Payment is due whether or not the franchisee receives an invoice from the lender. The agreement also specifies that restrictive endorsements on checks will not reduce the franchisee's obligations. It's important to note that once the loan is accepted, the franchisee cannot cancel it during the full loan term. This unconditional obligation means the franchisee is responsible for all payments and any other amounts due under the loan for the full loan term, even if the equipment is damaged, destroyed, or defective, or if the franchisee experiences a temporary or permanent loss of its use.