Under the Boulder Designs Personal Guarantee, what is the 'Note'?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, Franchisee and Franchisor 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 conditi |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the 'Note' referenced in the Personal Guarantee is a promissory note and security agreement. This note is issued to the franchisee or debtor in a specified dollar amount for the benefit of Boulder Designs Franchising, LLC, the payee.
The note includes terms and conditions such as an interest rate of 8.5% per annum or the Maximum Rate, whichever is less. It is structured to be paid in 42 monthly installments, with the first payment due on a specified date and subsequent payments due on the first day of each month thereafter. The final installment is due on a specific date, at which point the entire unpaid principal balance and all accrued interest are due.
The agreement specifies that payments will first be applied to accrued interest and then to the principal. Additionally, there is a stipulation that any payment not received within ten days of its due date will be considered late. This 'Note' is a critical financial instrument in the Boulder Designs franchise agreement, outlining the franchisee's debt obligations and repayment terms, which are secured by the Personal Guarantee.