Does Casa De Corazon guarantee financing assistance to all franchisees?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
ble, including any confidentiality and noncompete provisions of these agreements.
ITEM 10 FINANCING
We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations. Although we may, we do not currently intend to sell, assign or discount to a third party the financing discussed below.
Financing Offered
Our affiliate may offer to provide select franchisees financing assistance in the acquisition of their Casa de Corazon franchise and development of their Center. Whether it provides this assistance will depend on various factors including whether and to what extent there are funds for this purpose, whether the franchisee is in a market which we deem to be a target market, our strategy for growth, the creditworthiness of the candidate and various other factors. Our affiliate may offer to loan $100,000 to $200,000 for use solely in connection with the development of your Center. You will need additional funds for the development of your Center.
The interest rate will be the then-current prime rate of interest as published by the Wall Street Journal, as adjusted annually. (Promissory Note.) Payments will be made in 71 equal installments. (Promissory Note.) The amount of your loan payments will depend on the amount financed and the interest rate. You may prepay the loan without penalty. (Promissory Note.) Partial prepayments will not affect your obligation to pay future scheduled payments at the time and in the amount due until the Promissory Note is paid in full. (Promissory Note.) You will be required to waive presentment, demand for payment, notice of dishonor, notice of protest, protest, and all other notices or demands in connection with the Promissory Note. (Promissory Note.) If you default under any of the financing documents, and do not cure the default within 30
Source: Item 10 — FINANCING (FDD pages 22–23)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, Casa De Corazon does not offer direct or indirect financing and does not guarantee any franchisee's note, lease, or obligations. However, an affiliate of Casa De Corazon may offer financing assistance to select franchisees for the acquisition of their franchise and the development of their center.
Whether financing assistance is provided depends on several factors. These factors include the availability of funds, whether the franchisee is in a target market that Casa De Corazon deems important, Casa De Corazon's overall growth strategy, and the creditworthiness of the franchisee candidate. If offered, the affiliate may loan between $100,000 and $200,000, which is to be used solely for the development of the Casa De Corazon center. The FDD stipulates that franchisees will need additional funds beyond this loan for the full development of their center.
The interest rate on any loan provided by Casa De Corazon's affiliate will be the then-current prime rate of interest as published by the Wall Street Journal, adjusted annually. Loan payments will be made in 71 equal installments, and franchisees may prepay the loan without penalty. Casa De Corazon requires franchisees to waive certain legal rights related to the promissory note, such as presentment and demand for payment. Defaulting on any financing documents and failing to cure the default within 30 days after notice may result in the termination of the Franchise Agreement.