What waivers are granted by the Maker regarding the Note for a Caring Senior Service franchise?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Voluntary Prepayment. Maker reserves the right to prepay the outstanding principal balance of this Note, in whole or in part, at any time and from time to time, without premium or penalty.
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- Usury Laws. Regardless of any provisions contained in this Note, the Payee shall never be deemed to have contracted for or be entitled to receive, collect, or apply as interest on the Note, any amount in excess of the Maximum Rate, and, in the event Payee ever receives, collects, or applies as interest any such excess, such amount which would be excessive interest shall be applied to the reduction of the unpaid principal balance of this Note, and, if the principal balance of this Note is paid in full, then any remaining excess shall be paid to Maker.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 FDD, the Maker for a Caring Senior Service franchise has the right to prepay the outstanding principal balance of the note, in whole or in part, at any time without incurring any premium or penalty. Additionally, regardless of any provisions in the Note, the Payee will never be deemed to have contracted for or be entitled to receive, collect, or apply as interest on the Note any amount exceeding the Maximum Rate.
If the Payee ever receives, collects, or applies as interest any amount exceeding the Maximum Rate, the excess amount will be applied to reduce the unpaid principal balance of the Note. If the principal balance is paid in full, any remaining excess will be paid to the Maker.
These provisions protect the Maker by allowing them to pay off the debt early without penalty and ensuring they are not charged excessive interest rates, which is a fairly standard protection in lending agreements.