To whom does the Debtor promise to pay under the Boulder Designs promissory note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
have executed this Amendment to the Franchise Agreement simultaneously with the execution of the Franchise Agreement.
| FRANCHISOR: | FRANCHISEE: | |
|---|---|---|
| BOULDER DESIGNS | ||
| FRANCHISING, LLC | ||
| By: | By: | |
| Frank J. "Butch" Mogavero | Name/Title |
Chief Executive Officer
EXHIBIT 9 TO THE FRANCHISE AGREEMENT
PROMISSORY NOTE
PROMISSORY NOTE AND SECURITY AGREEMENT
| $ | , 20 |
|---|---|
| FOR VALUE RECEIVED, | , whose address |
| is ("Debtor", whether one or more) jointly and severally promises | |
| to pay to the order of Boulder Designs Franchising, LLC, a Texas limited liability company, or its affiliates, | |
| successors, | |
| and assigns ("Franchisor" or "PAYEE") at its offices at 2324 N. Robinson Drive, Waco, Texas | |
| 76706, or such other location as PAYEE may hereafter | designate, the principal sum of |
| and/100 Dollars ($), together with interest on the unpaid | |
| principal balance outstanding from time to time hereon at a rate equal to 8.5% per annum | or the Maximum |
| Rate, whichever is less, under the terms and conditions of this promissory note and security agreement | |
| ("Note"). This Note is due and payable in 42 | monthly installments of principal and interest. The first of |
| 42 | |
| payments shall be in an amount of $ commencing, 20, and on the | |
| first day of each and every calendar month thereafter, and the 42nd | and final installment shall be due on |
| , 20, on which date the entire unpaid principal balance and all accrued and unpaid | |
| interest is due and payable in full. Each payment will first be applied to accrued and unpaid interest and | |
| then to principal. Any payment not received by PAYEE within ten (10) days of its due date is subject to a | |
| late fee of Fifty Dollars ($50). | |
| "Maximum Rate" means the maximum lawful rate of interest permitted by applicable usury laws | |
| now or hereafter enacted which interest rate shall change when and as said laws change, to the extent | |
| permitted by law, effective on the day such change in said laws becomes effective. |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Debtor promises to pay Boulder Designs Franchising, LLC, a Texas limited liability company, or its affiliates, successors, and assigns. This entity is also referred to as the Franchisor or PAYEE in the document.
This means that if a franchisee (the Debtor) takes out a promissory note, they are legally obligated to repay the debt to Boulder Designs Franchising, LLC. This obligation extends not only to the original company but also to any affiliated entities, successors, or assigns that Boulder Designs Franchising, LLC might transfer the debt to.
The promissory note outlines the terms and conditions of the loan, including the principal sum, interest rate (8.5% per annum or the Maximum Rate, whichever is less), and repayment schedule (42 monthly installments). Failure to make payments or any termination of the Franchise Agreement can result in the Franchisor declaring the entire unpaid balance immediately due and payable.