Can the Chem Dry Business Note be prepaid?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
se, claim, set off, or other cause in favor of Borrower arising under the Franchise Agreement shall affect Borrower's obligations to pay this Business Note in accordance with its terms. CDI may assign, transfer, discount or pledge this Business Note without notice to Borrower. Borrower acknowledges that its obligations under this Business Note are independent of and are not conditioned or dependent upon any rights or obligations of the parties to the Franchise Agreement.
This Business Note may be prepaid in whole or in part, without premium, from time to time on the date that any installment comes due, with minimum partial payments of $100.00 or any multiple thereof. If Borrower pays the Initial License Fee amount owed pursuant to the Franchise Agreement associated with this Business Note in full within six (6) months of the date of this Business Note, CDI will discount the total due for the Initial License Fee by ten percent (10%). No prepayments of this Business Note shall affect the obligation of Borrower to make the
payments of installments of the principal and interest required by the first paragraph hereof until this Business Note shall have been paid in full.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the Business Note can be prepaid in whole or in part without any premium. However, there is a minimum partial payment requirement of $100.00 or any multiple thereof, and prepayments do not eliminate the obligation to make scheduled installment payments until the Business Note is paid in full.
Chem Dry also offers a discount on the Initial License Fee if it is paid in full within six months of the Business Note date. If the franchisee meets this condition, Chem Dry will discount the total due for the Initial License Fee by ten percent (10%).
It's important to note that all amounts due to Chem Dry are subject to a one-time late fee of $100.00, and will accrue interest after the due date at the highest applicable legal rate for open account business credit in the franchisee's state of domicile, but not exceeding 1.5% per month. After the Business Note's maturity, interest accrues on the principal balance at a rate of 18% per annum. Additionally, a $40.00 charge is assessed for each returned unpaid installment.