What is the purpose of the Security Agreement for Casa De Corazon franchisees?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
ESS WHEREOF, the undersigned have executed this Addendum as of the date first set forth below.
CASA FRANCHISING, LLC 4900-5766-4267, v. 6
EXHIBIT H
ELECTRONIC TRANSFER OF FUNDS AUTHORIZATION
ELECTRONIC TRANSFER OF FUNDS AUTHORIZATION
| The undersigned ("Franchisee") acknowledges that on or about, 202, Franchisee and Casa Franchising, LLC ("Franchisor") entered into a Franchise Agreement ("Agreement") for the operation of a Casa de Corazon early childhood learning center franchise. |
|---|
| To enable the Franchisor to receive automatic payments pursuant to the Agreement, Franchisee authorizes |
| ("Authorization") Franchisor to withdraw funds from and otherwise initiate debit entries to Franchisee's bank |
| account, indicated below, and the depository named below ("Depository"), to debit the same to such account. |
| Depository Name: |
| Branch: |
| City State and Zip: |
| Transit/ABA#: |
| Bank Account Name: |
| Bank Account Number: |
| Tax ID for Account: |
| This Authorization is to remain in full force and effect until the underlying obligations of the Agreement have been |
| satisfied in full or expressly released in writing by Franchisor. Franchisee expressly agrees that this Authorization |
| will apply to any and all depositories and bank accounts that Franchisee opens during the term of the Agreement |
| and any renewal terms. Without limiting the above, Franchisee acknowledges and agrees that if Franchisee closes |
| any bank account, Franchisee will: |
| 1) |
| immediately notify Franchisor in writing; |
| 2) |
| open or otherwise establish another bank account meeting Franchisor's requirements; |
| 3) |
| execute and deliver to Franchisor all documents necessary for Franchisor to begin and continue making |
| withdrawals from such bank account/depository by ACH debiting or other electronic means. |
| Franchisee expressly acknowledges and agrees that this Authorization will be the only written authorization |
| needed from Franchisee in order to initiate debit entries/ACH debit originations to Franchisee's bank account(s) |
| established with any depository in the future. |
| Name of Franchisee: |
| Signature: |
| Print Name: |
| Title: |
| Date: |
EXHIBIT I FRANCHISEE QUESTIONNAIRE
FORM OF FRANCHISE QUESTIONNAIRE
The purpose of this Certification is to determine whether any statements or promises were made to you that we have not authorized and that may be untrue, inaccurate or misleading. Please review each of the following questions and statements carefully and provide honest and complete responses to each.
| 1. | Have you received and personally reviewed our Franchise Agreement and any attachments to it? |
|---|---|
| Yes | |
| No | |
| 2. | Have you received and personally reviewed our Franchise Disclosure Document ("FDD")? |
| Yes | |
| No | |
| 3. | Did you sign a receipt for the FDD indicating the date you received it? |
| Yes | |
| No | |
| 4. | Have you discussed the benefits and risks of purchasing a Casa de Corazon center (the "Center") |
| with an attorney, accountant or other professional advisor? | |
| Yes | |
| No | |
| If not, do you wish to have more time to do so? |
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, there is no mention of a Security Agreement for Casa De Corazon franchisees within the provided excerpts. However, there is an Authorization form that allows Casa De Corazon to withdraw funds from the franchisee's bank account for payments due under the Franchise Agreement. This authorization remains in effect until all obligations are satisfied or expressly released in writing by Casa De Corazon. The franchisee must also provide updated bank account information if they close an account and open a new one. This Authorization will be the only written authorization needed from Franchisee in order to initiate debit entries/ACH debit originations to Franchisee's bank account(s) established with any depository in the future.
Additionally, there is a Guaranty agreement mentioned, where a third party guarantees the franchisee's financial and performance obligations to Casa De Corazon. This ensures that Casa De Corazon has recourse to another party if the franchisee fails to meet their commitments under the Franchise Agreement.
To fully understand if a Security Agreement is used and its specific purpose, a prospective franchisee should ask Casa De Corazon's franchisor directly about the circumstances under which a Security Agreement would be required, what assets it would cover, and what the implications would be for the franchisee.