What constitutes an 'Event of Default' that could trigger a demand for payment from Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
DEFAULT.** I will be in default if any of the following events (known separately and collectively as an Event of Default) occur:
- **A.
Payments.** I fail to make a payment in full when due.
- **B.
Insolvency or Bankruptcy.** The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization, composition or debtor relief law by or against me, Borrower, or any co-signer, endorser, surety or guarantor of this Guaranty or any Debt.
- **C.
Death or Incompetency.** I die or am declared legally incompetent.
- **D.
Failure to Perform.** I fail to perform any condition or to keep any promise or covenant of this Guaranty.
- **E.
Other Documents.** A default occurs under the terms of any other document relating to the Debt.
- **F.
Other Agreements.** I am in default on any other debt or agreement I have with you.
- **G.
Misrepresentation.** I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a material fact at the time it is made or provided.
- **H.
Judgment.** I fail to satisfy or appeal any judgment against me.
- **I.
Forfeiture.** The Property is used in a manner or for a purpose that threatens confiscation by a legal authority.
- **J.
Name Change.** I change my name or assume an additional name without notifying you before making such a change.
- **K.
Property Transfer.** I transfer all or a substantial part of my money or property.
- **L.
Property Value.** You determine in good faith that the value of the Property has declined or is impaired.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, several events can trigger a default, leading to potential demands for payment. These events cover a broad range of financial and operational issues.
Specifically, a franchisee will be in default if they fail to make payments in full when due. Default can also occur if there is insolvency or bankruptcy, including the appointment of a receiver, application of debtor relief laws, assignment for the benefit of creditors, or the commencement of any proceeding under federal or state insolvency, bankruptcy, reorganization, or debtor relief law. The death or legal incompetency of the franchisee also constitutes an event of default.
Furthermore, the FDD states that failure to perform any condition, promise, or covenant of the guaranty, a default occurring under any other document relating to the debt, or being in default on any other debt or agreement with Beverly Anns Cookie can trigger a default. Misrepresentation through untrue or inaccurate statements or concealment of material facts, failure to satisfy or appeal a judgment, use of the property in a manner that threatens confiscation, changing the franchisee's name without notice, transferring a substantial part of their money or property, or a determination by Beverly Anns Cookie in good faith that the value of the property has declined or is impaired also constitute default events.