What is the Beverly Anns Cookie borrower's responsibility regarding the equipment invoice?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
the terms of this Loan from the date you execute this Loan ("Effective Date") until you have paid the Loan in full.
-
- 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 authorizes the commencement of the Loan ("Commencement Date").
-
- PAYMENT. You agree to pay us the Loan Payments when each payment is due. If we designate the Loan Payment 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.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the borrower, upon receiving an equipment invoice, must ensure the equipment is duly ordered and will be delivered to its intended location. By signing the loan document, the borrower confirms that the equipment will be properly installed and in good working order upon delivery, which constitutes unconditional acceptance of the equipment and authorizes the commencement of the loan.
Beverly Anns Cookie franchisees are obligated to make loan payments as scheduled, regardless of whether they receive an invoice from the lender. The franchisee's obligation to pay remains even if the equipment is damaged, destroyed, defective, or its use is temporarily or permanently lost. The franchisee is not entitled to reduce or offset payments for any reason.
This arrangement places significant responsibility on the Beverly Anns Cookie franchisee to inspect and accept the equipment promptly upon delivery. Any issues with the equipment must be resolved directly with the vendor or manufacturer, as the loan obligation to the lender remains unconditional. This is a fairly standard practice in equipment financing agreements, but franchisees should be aware of their responsibilities and the risks involved.