What is the definition of 'PAYEE' 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 |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the 'PAYEE' in the context of the Promissory Note is defined as Boulder Designs Franchising, LLC, a Texas limited liability company, including its affiliates, successors, and assigns. This definition is crucial for prospective franchisees as it clarifies to whom the debt is owed under the promissory note.
Specifically, the promissory note outlines the financial obligations of the franchisee (Debtor) to Boulder Designs (PAYEE). This means that Boulder Designs, as the 'PAYEE', is the entity entitled to receive payments of principal and interest as specified in the note. The inclusion of 'affiliates, successors, and assigns' broadens the scope, indicating that the rights to receive payments can be transferred to other related entities or parties.
For a potential Boulder Designs franchisee, understanding this definition is essential for several reasons. First, it clearly identifies the party to whom the franchisee is financially obligated. Second, it acknowledges that this obligation may be transferred to another entity, which could impact how and to whom payments are made over the term of the loan. Therefore, franchisees should pay close attention to any notifications regarding changes in the 'PAYEE' to ensure proper payment allocation and avoid potential defaults.