What rights does the Loan and Security Agreement require a Beverly Anns Cookie franchisee to waive?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
and expenses of collection.
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- The Loan and Security Agreement requires that you waive trial by jury and the right to interpose any defense, set-off, or counterclaim of any nature or description. Arbitration or trial by judge will take place on an individual basis without any form of class action. Auxilior is not liable for specific performance for any loss, damages, delay or failure to deliver equipment.
Osgood Bank Financing
Osgood Bank may offer you Financing for the purchase of your GRM/GRT and initial inventory and equipment. You will be required to enter into a promissory note, guaranty, security agreement ("Promissory Note and Security Agreement") attached in Exhibit H to this Franchise Disclosure Document.
Source: Item 10 — FINANCING (FDD pages 33–37)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the Loan and Security Agreement that franchisees must sign to obtain financing requires them to waive certain legal rights. Specifically, franchisees must waive their right to a trial by jury. This means that any disputes arising under the Loan and Security Agreement would be resolved by a judge rather than a jury of their peers.
Additionally, franchisees are required to waive the right to interpose any defense, set-off, or counterclaim of any nature or description. This is a significant concession, as it limits the franchisee's ability to raise defenses or assert claims against the lender in the event of a dispute. For example, a franchisee could not withhold payment due to a perceived breach of contract or other grievance. This waiver applies to financing obtained through Auxilior Capital Partners and Osgood Bank.
For franchisees obtaining financing through Eagle Financial Services, Inc., the Note requires a waiver of trial by jury and the right to interpose any defense, set-off or counterclaim of any nature or description, as well as waive demand, presentment, protest, notice of dishonor, notice of protest, notice of default and all suretyship defenses. This means the franchisee gives up additional rights related to how the lender demands payment or provides notice of any issues with the loan.
These waivers are common in commercial loan agreements, but prospective Beverly Anns Cookie franchisees should carefully consider the implications before signing any financing documents. It is advisable to seek legal counsel to fully understand the rights being waived and the potential consequences.