Does the Boulder Designs Promissory Note allow for assignment of the note by Boulder Designs Franchising, LLC?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Promissory Note does allow for assignment of the note by Boulder Designs Franchising, LLC. The agreement states that the Debtor promises to pay Boulder Designs Franchising, LLC, or its affiliates, successors, and assigns. This means that Boulder Designs has the right to transfer the rights to receive payments under the promissory note to another party.
For a prospective Boulder Designs franchisee, this clause indicates that the financial obligation they undertake through the promissory note could be managed by a different entity during the term of the agreement. This is a fairly standard practice in franchising and business finance, allowing the franchisor flexibility in managing its assets and financial arrangements.
While the clause itself doesn't impose additional obligations on the franchisee, it's important to understand that the entity to whom the note is assigned will have the right to collect payments and enforce the terms of the note. Franchisees should ensure they understand their rights and obligations under the promissory note, regardless of who holds it. They should also confirm that any assignment of the note does not alter the original terms and conditions to which they agreed.