Does notice of revocation affect Debts incurred before the notice is received for Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
I agree that this Guaranty will remain binding on me, whether or not there are any Debts outstanding, until you have actually received written notice of my revocation or written notice of my death or incompetence.
Notice of revocation or notice of my death or incompetence will not affect my obligations under this Guaranty with respect to any Debts incurred by or for which you have made a commitment to Borrower before you actually receive such notice, and all renewals, extensions, refinancings, and modifications of such Debts.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a notice of revocation does not affect obligations regarding debts incurred before the notice is received. Specifically, this applies to debts incurred by or for which a commitment was made before the actual receipt of the revocation notice. This also includes all renewals, extensions, refinancings, and modifications of such debts.
This means that if a franchisee has guaranteed a loan for Beverly Anns Cookie and then provides a notice of revocation, they are still responsible for any debts that were already in place or committed to before the notice was received. This protection extends to any changes or extensions of those existing debts.
This clause protects the lender, ensuring that a personal guarantee remains in effect for existing financial obligations even if the guarantor attempts to withdraw their guarantee. A prospective Beverly Anns Cookie franchisee should carefully consider the implications of any personal guarantees they make, as they will remain liable for existing debts even after providing notice of revocation.