Does Beverly Anns Cookie guarantee a franchisee's note, lease, or obligation?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie does not guarantee a franchisee's note, lease, or obligation. The FDD states that neither Beverly Anns Cookie nor its agents or affiliates offer direct financing, and they do not have any past or present practice of selling, assigning, or discounting any financing arrangements to third parties. However, Beverly Anns Cookie does reserve the right to offer further financing or assist franchisees in obtaining financing in the future.

While Beverly Anns Cookie does not directly guarantee any financial obligations, the document outlines potential financing options through lenders like Eagle Financial Services, Auxilior Capital Partners and Osgood Bank. These lenders may offer financing for the purchase of the GRM/GRT (presumably a type of Beverly Anns Cookie outlet) and initial inventory. It is important to note that the owner of Eagle Financial Services has an indirect small minority ownership interest in Beverly Anns Cookie, and an officer of Eagle is also one of Beverly Ann's Cookie's directors.

If a franchisee obtains financing through Osgood Bank, Eagle Financial Services or Auxilior Capital Partners and the franchisee entity is a partnership, corporation, or other recognized legal entity, the Promissory Note and Security Agreement, the Note, or the Loan and Security Agreement must be guaranteed individually by all partners or shareholders. These agreements must be secured by the assets of the Beverly Ann's Cookie franchise. This means that while Beverly Anns Cookie itself does not act as a guarantor, the individual owners or partners of the franchisee business may be required to provide personal guarantees, and the franchise assets will be used as collateral.