Does the Boulder Designs Promissory Note specify any collateral securing the note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition for Payee to agree to lend Debtor the funds contemplated herein this Note, Debtor grant to Payee, a security interest in its property, tangible and intangible, including but not limited to: all inventory, furniture, fixtures, equipment, and supplies now owned or subsequently acquired; and the proceeds, products, and accessions of and to any and all of the foregoing (the "Collateral"). Debtor shall not grant a security interest in the Collateral to any other party without the Debtor's prior written consent.
This security interest is granted to secure the debt evidenced by this Note and all costs and expenses incurred by Payee in the collection of the debt. This Note is a valid pledge of the Collateral and creates a valid security interest in the Collateral securing payment of the indebtedness evidenced in this Note.
Payee, in its discretion, may file one or more financing statements under the Texas Uniform Commercial Code, naming Debtor as a debtor and Payee as secured party and indicating the Collateral specified in this Promissory Note and Security Agreement. Notwithstanding, no authorization, approval or other action by, and no notice to or filing with any governmental authority or regulatory body is required for the pledge or the grant of the security interest granted hereby.
Personal Guarantee It is further understood that this Note is secured by a personal guarantee from Debtor's principal, , in substantially the form attached hereto as Attachment A. DEBTOR: PAYEE: Boulder Designs Franchising, LLC, a Texas limited liability company,
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Promissory Note requires the Debtor to grant the Payee (Boulder Designs Franchising, LLC) a security interest in the Debtor's property as a condition for the loan. This property includes tangible and intangible assets such as all inventory, furniture, fixtures, equipment, and supplies currently owned or acquired later, along with any proceeds, products, and accessions related to these items. This collection of assets is referred to as the "Collateral".
The Debtor is prohibited from granting a security interest in the Collateral to any other party without Boulder Designs' prior written consent. This security interest serves to secure the debt outlined in the Note, as well as any costs and expenses incurred by Boulder Designs in collecting the debt. The Note acts as a valid pledge of the Collateral and establishes a valid security interest in the Collateral to ensure the repayment of the debt specified in the Note.
Boulder Designs, at its discretion, may file financing statements under the Texas Uniform Commercial Code, identifying the Debtor and Boulder Designs as the secured party, and specifying the Collateral as described in the Promissory Note and Security Agreement. No authorization, approval, notice, or filing with any governmental or regulatory body is required for the pledge or the granting of the security interest. Additionally, the Note is secured by a personal guarantee from the Debtor's principal, as detailed in Attachment A.