What security is required to obtain financing for 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. Amo |
Source: Item 10 — FINANCING (FDD pages 33–37)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the security required to obtain financing from Auxilior Capital Partners includes a personal guarantee from the owner, partner, or shareholder, as well as a pledge of the Beverly Anns Cookie franchise itself. This means that in addition to the business assets, the personal assets of the guarantor(s) are at risk should the franchise default on the loan.
Similarly, Osgood Bank also requires a personal guarantee from the owner, partner, or shareholder, along with a pledge of the Beverly Anns Cookie franchise assets as security. This is a common practice in franchising, as it provides the lender with additional recourse in case of default. The franchisee should carefully consider the implications of providing a personal guarantee, as it could put their personal assets at risk.
Eagle Financial Services also requires a personal guarantee from the owner, partner, or shareholder, and a pledge of the Beverly Anns Cookie franchise assets as security for financing. This consistent requirement across different lenders highlights the importance of the franchisee's commitment and the lender's need to secure their investment. Prospective franchisees should review the Loan and Security Agreement, Promissory Note and Security Agreement, or Note in Exhibit H of the FDD to fully understand the terms and conditions of the financing, including the security requirements and potential liabilities upon default.