How are monthly installments applied to the Clear Pest Pros promissory note?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | FOR VALUE RECEIVED, and |
|---|---|
| (collectively, the "Undersigned") promises to pay to the order of Safer Home Services | |
| International, LLC, | a Michigan Limited Liability Company, at 5405 Data Court, Ann |
| Arbor, Michigan 48108 (the "Holder"), the principal sum of $ together | |
| with interest at a rate of 10% for up to 24 months. The principal and interest shall be paid | |
| in equal monthly installments as stated in the payment schedule attached to this Promissory | |
| Note as Exhibit "1", which is made a part of this Promissory Note. The first installment | |
| shall be due via Electronic Funds Transfer ("EFT") on the first of the month following the | |
| successful completion of the initial training, if required under the franchise agreement, | |
| between Holder and the Undersigned, and thereafter monthly installments will be due via | |
| EFT on the first day of each successive month until the principal and interest due under | |
| this Promissory Note have been paid in full. PROVIDED, HOWEVER, that the entire | |
| principal balance together with all accrued interest thereon shall be due and payable on or | |
| before 36 months following the payment of the first installment, anything here in this | |
| Agreement to the contrary notwithstanding. | After maturity of this Promissory Note |
| (whether by acceleration or otherwise), Holder shall have the right to collect all payments, | |
| together with all accrued interest and late fees, due. |
-
- Monthly installments shall be applied first upon interest and the balance upon principal. This Promissory Note may be prepaid in full at any time without restriction or penalty.
-
- Should any monthly installment not be paid when due, then the Holder shall elect to either (a) require that the whole sum of the remaining principal and interest shall become due immediately and payable upon notice to the Undersigned or (b) charge a late fee of 5% or $50, per week, whichever sum is greater. All unpaid amounts owing on this Promissory Note shall immediately become due and payable at the option of Holder without notice or demand upon the occurrence of any of the following events of default: (i) the default of any provision of the Promissory Note; or (ii) the death, dissolution, insolvency (however expressed or indicated) or the filing of a petition in bankruptcy, reorganization or for the adjustment of debts for, by or against the Undersigned; (iii) the sale of substantially all of the Undersigned's stock or assets; (iv) the Undersigned's failure to permit Holder to collect a
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros' 2025 Franchise Disclosure Document, monthly installment payments are first applied to cover the interest accrued, with the remaining balance then being applied to reduce the principal amount of the note. The promissory note can be prepaid without any restrictions or penalties.
If a monthly installment is not paid when due, the holder of the note has the option to either demand immediate payment of the entire remaining principal and interest or charge a late fee. This late fee is calculated as the greater of 5% or $50 per week.
Several events can trigger the immediate due and payable status of all unpaid amounts, including defaulting on any provision of the Promissory Note, the death, dissolution, or insolvency of the undersigned, the filing of a bankruptcy petition, the sale of substantially all of the undersigned's stock or assets, or the failure to allow the holder to collect amounts via EFT. The undersigned waives requirements for presentation for payment, demand, notice of nonpayment, protest, and all other demands and notices required by law.