What is the definition of 'Debtor' in the Boulder Designs Promissory Note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| ON THIS DAY,, 20, for valuable consideration, the receipt and sufficiency of which |
|---|
| are hereby acknowledged, and in consideration of Boulder Designs Franchising, LLC, a Texas limited |
| liability company, or its affiliates, successors, and assigns |
| ("Franchisor" or "Payee") having made, or now |
| or in the future making, loans in connection with the Promissory Note, dated as of, |
| 20, |
| issued |
| to |
| ("Franchisee" |
| or |
| "Debtor") |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the term 'Debtor' in the context of the Promissory Note refers to the franchisee. Specifically, the document states that on a given date, for valuable consideration, Boulder Designs Franchising, LLC (referred to as 'Franchisor' or 'Payee') has made or will make loans in connection with the Promissory Note to an entity identified as 'Franchisee' or 'Debtor'.
This definition is important because it clarifies who is responsible for repaying the loan outlined in the Promissory Note. As the 'Debtor,' the franchisee is obligated to fulfill the financial commitments detailed in the note, including principal and interest payments. This obligation is further reinforced by a personal guarantee from the Debtor's principal, adding another layer of security for Boulder Designs.
Furthermore, the document outlines the conditions under which the Franchisor can demand immediate payment of the outstanding balance, such as the termination of the Franchise Agreement or failure to make timely payments. Understanding the definition of 'Debtor' is therefore crucial for any prospective Boulder Designs franchisee, as it directly relates to their financial responsibilities and potential liabilities under the franchise agreement.