Who must issue and sign the Business Note for a Chem Dry franchise?

According to Chem Dry's 2024 Franchise Disclosure Document, the Business Note must be issued and signed by the franchisee. If the franchisee is an entity, the owners, officers, shareholders, or members must also sign as personal guarantors. This Business Note is used when Chem Dry finances a portion of the initial license fee for franchisees.

Chem Dry may finance up to 40% of the initial license fee for franchisees who meet their credit standards. The interest rate on the Business Note will be between 8% and 15%, depending on Chem Dry's underwriting standards. As a condition of this financing, the franchisee must make a non-refundable down payment on the initial license fee when signing the Franchise Agreement and the Business Note. The remaining balance is then paid in consecutive monthly installments.

The Business Note includes a waiver of defenses, meaning the franchisee may be limited in their ability to raise certain defenses against Chem Dry in the event of a dispute. Chem Dry also requires an automatic debit program for all fee and Business Note payments, with payments due on or before the tenth day of each month. Late payments are subject to an interest charge of 1.5% per month, or the highest rate allowed by law, whichever is less. If payments are not made when due, Chem Dry can accelerate the note, demanding immediate payment of the full outstanding amount plus accrued interest, and may also terminate the Franchise Agreement.