What documents are required to obtain financing from Osgood Bank for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Osgood Bank may offer you Financing for the purchase of your GRM/GRT and initial inventory and equipment. You will be required to enter into a promissory note, guaranty, security agreement ("Promissory Note and Security Agreement") attached in Exhibit H to this Franchise Disclosure Document. The following table summarizes the Financing Osgood Bank may offer you:
SUMMARY OF OSGOOD BANK FINANCING OFFERED(1)
Notes:
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- Osgood Bank reserves the right to change the terms, interest rate and amounts financed.
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- Payment structure will reflect the seasonal nature of the Beverly Ann's Business. During the offseason (up to three months) of every year, contract payments of $100/per month will be required. Payments made during the in-season (the other nine months of the year) will be higher to allow for repayment of the loan to occur over 60 months and will vary based on the loan amount (equal to the current price of one GRM/GRT and one initial inventory pack, less any down payment) and the borrower's interest rate, which is determined by credit score (ranging from WSJ Prime + 4.25% for lower credit scores to WSJ Prime + 2.75% for higher credit scores). Interest would continue to accrue at the standard rate during the off-season period.
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- If your franchisee entity is a partnership, corporation, or other recognized legal entity, the Promissory Note and Security Agreement must be guaranteed individually by all partners or shareholders. The Promissory Note and Security Agreement must be secured by the assets of the Beverly Ann's Cookie Franchise, including applicable titles.
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- If you are late on your payments, Osgood Bank can charge a late penalty. In the case of nonpayment or other default under the Promissory Note and Security Agreement, Osgood Bank can require immediate payment of all amounts due them and can collect reasonable attorney fees and all costs and expenses of collection.
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- The Promissory Note and Security Agreement requires that you waive trial by jury and the right to interpose any defense, set-off, or counterclaim of any nature or description.
Source: Item 10 — FINANCING (FDD pages 33–37)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, to obtain financing from Osgood Bank, a franchisee will be required to enter into a promissory note, guaranty, and security agreement, which are collectively referred to as the "Promissory Note and Security Agreement." This agreement is attached as Exhibit H to the FDD. If the franchisee entity is a partnership, corporation, or other recognized legal entity, all partners or shareholders must individually guarantee the Promissory Note and Security Agreement. The agreement must also be secured by the assets of the Beverly Ann's Cookie franchise, including applicable titles.
Several conditions apply to this financing. Osgood Bank reserves the right to change the terms, interest rate, and amounts financed. The payment structure will reflect the seasonal nature of the Beverly Ann's Cookie business, with lower payments of $100 per month required during the off-season (up to three months) and higher payments during the in-season to allow for repayment of the loan over 60 months. The interest rate will vary based on the borrower's credit score, ranging from WSJ Prime + 4.25% for lower credit scores to WSJ Prime + 2.75% for higher credit scores. Interest continues to accrue at the standard rate during the off-season.
There are also specific stipulations regarding defaults and legal rights. If a franchisee is late on payments, Osgood Bank can charge a late penalty. In the case of nonpayment or other default, Osgood Bank can require immediate payment of all amounts due and can collect reasonable attorney fees and all costs and expenses of collection. The Promissory Note and Security Agreement also requires the franchisee to waive trial by jury and the right to interpose any defense, set-off, or counterclaim.
Prospective franchisees should carefully review Exhibit H and consider these conditions, as they significantly impact their rights and obligations under the financing agreement. Understanding these terms is crucial before committing to financing with Osgood Bank for a Beverly Anns Cookie franchise.