Does the limitation on cross-collateralization for Beverly Anns Cookie include extensions or refinancings of the Loan?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the cross-collateralization clause on any existing or future loan, excluding the specific Loan, is considered void and ineffective. This limitation explicitly applies to the Loan itself, including any extensions or refinancings of that Loan.

For a prospective Beverly Anns Cookie franchisee, this means that any existing or future loans they may have, apart from the specific Loan related to the franchise, cannot be used as collateral for the franchise loan, and vice versa. This protection extends to any modifications of the franchise loan, such as extensions or refinancings, ensuring that the franchisee's other assets remain separate from the franchise loan obligations.

This limitation on cross-collateralization provides a degree of financial security for the franchisee, preventing a default on the franchise loan from potentially jeopardizing other assets or loans. It is a beneficial provision that protects the franchisee's broader financial interests, which is not always standard in franchise agreements.