What security is required for financing a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Security Required | Personal Guaranty of Owner, Partner or Shareholder and pledge of the Franchise(3) |
|---|---|
| Liability Upon Default | Late penalty; acceleration of amounts due; fees(4) |
| Loss of Legal Right On | Waiver of trial by jury and right to interpose any defense, set-off, |
| Default | or counterclaim of any nature or description(5) |
| Fee(s) | $250 Documentation Fee. Amount can be financed in loan. |
Neither we nor any affiliate or agent receives any consideration for our franchisees' use of Osgood Bank for Financing.
Notes:
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- Osgood Bank reserves the right to change the terms, interest rate and amounts financed.
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- Payment structure will reflect the seasonal nature of the Beverly Ann's Business. During the offseason (up to three months) of every year, contract payments of $100/per month will be required.
Source: Item 10 — FINANCING (FDD pages 33–37)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a franchisee seeks financing through Eagle Financial Services or Auxilior Capital Partners, the required security includes a personal guarantee from the owner, partner, or shareholder, along with a pledge of the Beverly Anns Cookie franchise assets.
For financing obtained through Osgood Bank, if the franchisee entity is a partnership, corporation, or other recognized legal entity, the Promissory Note and Security Agreement must be guaranteed individually by all partners or shareholders. Additionally, the Promissory Note and Security Agreement must be secured by the assets of the Beverly Anns Cookie franchise, including applicable titles.
These security requirements mean that in the event of a default on the loan, the lender can pursue the personal assets of the guarantor (owner, partner, or shareholder) and seize the assets of the Beverly Anns Cookie franchise to recover the outstanding debt. This is a standard practice in franchising, as it provides the lender with additional assurance that the loan will be repaid. Prospective franchisees should carefully consider the implications of providing a personal guarantee and pledging their franchise assets before entering into a financing agreement.