Can the lender release, substitute, or impair any property securing the Beverly Anns Cookie loan?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the lender has the right to release, substitute, or impair any property securing the loan. Specifically, the document states that the borrower consents to the lender taking such actions. This consent is part of a broader waiver where the borrower agrees to allow the lender to take various actions without affecting the borrower's obligations. This waiver is applicable to the extent not prohibited by law.

This provision means that Beverly Anns Cookie franchisees may find that the collateral they pledge for a loan can be altered by the lender without requiring further consent from the franchisee. The lender could release certain assets from the security agreement, substitute them with other assets, or take actions that diminish the value or protection of the secured property.

For a prospective Beverly Anns Cookie franchisee, this clause highlights the importance of carefully evaluating the loan terms and understanding the potential implications of waiving rights related to the secured property. Franchisees should seek legal counsel to fully understand the risks associated with these waivers and how they might impact their financial obligations and business assets.