If Beverly Anns Cookie assigns the Loan, are they relieved of their obligations?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if Beverly Ann's Cookie assigns, sells, or transfers the loan or equipment, they are not relieved of their obligations to the franchisee under the loan. This means that even if the loan is transferred to a new owner, Beverly Ann's Cookie remains responsible for fulfilling the terms of the loan agreement with the franchisee.

However, the franchisee is obligated to respond to requests about the loan if notified of a new owner and, if directed by Beverly Ann's Cookie, to make all payments and amounts due under the loan to the new owner. This indicates that while Beverly Ann's Cookie remains ultimately responsible, the franchisee's payment obligations shift to the new loan owner upon notification and direction from Beverly Ann's Cookie.

This clause protects the franchisee by ensuring that the loan terms remain in effect regardless of any assignment. However, franchisees must stay informed about any changes in loan ownership and follow Beverly Ann's Cookie's instructions regarding payments to avoid defaulting on the loan. Franchisees should carefully document all communications and payment directions to ensure compliance and protect their interests.