Is payment due for Beverly Anns Cookie equipment loan whether or not an invoice is received?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ipal Amount from the commencement Date until the first Loan Payment due date. Interim interest shall be equal to the pro rata portion of the daily equivalent of the Loan interest rate. Payment is due whether or not you receive an invoice from us. Restrictive endorsements on checks you send to us will not reduce your obligations to us.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, loan payments are due regardless of whether an invoice is received. The Loan and Security Agreement states that franchisees are obligated to make payments when due, irrespective of receiving an invoice from the lender.
This condition means that Beverly Anns Cookie franchisees must maintain a diligent payment schedule to avoid late charges, which are the higher of 10% of the amount due or $25.00, not exceeding the maximum amount permitted by law. Franchisees cannot use the absence of an invoice as a reason to delay or withhold payment.
Furthermore, the agreement emphasizes that franchisees are unconditionally obligated to pay all amounts due for the full loan term, even if the equipment is damaged, destroyed, defective, or its use is temporarily or permanently lost. Franchisees are not entitled to reduce or offset payments for any reason whatsoever. This underscores the importance of securing appropriate insurance coverage on financed equipment, as indicated in the Loan and Security Agreement.