What is the 'Note' referenced in the Casa De Corazon Security Agreement?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
s of the date and year first
This instrument was drafted by: Maslon LLP 3300 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402
EXHIBIT A Real Property
| The following real property located in | |
|---|---|
PERSONAL GUARANTY
THIS PERSONAL GUARANTY ("Guaranty") is executed effective as of by ("Guarantor"), in favor of CASA DE CORAZON, INC., a Minnesota corporation ("Payee").
RECITALS
- A. On the date hereof, ____________ a ____________ [limited liability company/corporation] ("Borrower"), is issuing to Payee a Promissory Note in an original principal amount of $____________ (the "Note").
- B. Guarantor is the sole owner of Borrower and will receive direct and indirect benefits from the consummation of the transactions contemplated by the Note.
- C.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the 'Note' referenced in the Personal Guaranty agreement pertains to a Promissory Note. Specifically, the document states that the Borrower is issuing to the Payee (CASA DE CORAZON, INC.) a Promissory Note in an original principal amount of a specified dollar amount.
The document indicates that the Guarantor, who is the sole owner of the Borrower, will receive benefits from the transactions related to the Note. As a condition for the Payee to loan the principal amount in exchange for the Note, the Guarantor agrees to fully guarantee the Borrower's obligations under the Note, as per the terms and conditions outlined in the Guaranty.
In simpler terms, this means that if a franchisee (Borrower) takes out a loan (Promissory Note) from Casa De Corazon, Inc. (Payee), the owner of the franchisee (Guarantor) must sign a Personal Guaranty. This Guaranty ensures that the owner is personally responsible for repaying the loan if the franchisee's business fails to do so. The specific dollar amount of the loan is determined at the time of the agreement.