In the Coffee News promissory note, what information is required from the Coffee News franchisee?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
. In no event shall any monies _, 20, which is called the "maturity date." by time without penalty. | | month until he/she have paid all of the | | | described above that he/she may owe ur | |
The Debtor acknowledges and hereby agrees to grant Holder, with any and all the licensed rights to the territory that was granted to Debtor in the foregoing Coffee News Franchise Agreement, to secure the payment set forth in this Promissory Note and to secure the performance of all covenants and agreements contained herein. In the event of a failure to pay interest, principal or any other amount due on this Promissory Note in accordance with its terms, or of a breach of any other covenant, condition or agreement contained herein, remaining uncured for a period in excess of five (5) days (except that no grace period shall be permitted for a default under this Note or the foregoing Coffee News Franchise Agreement), or any breach in the covenants, conditions or agreements in any instrument given in connection with the Promissory Note and debt secured hereby, or if a proceeding in bankruptcy, receivership or insolvency shall be instituted by or against the undersigned, or if the foregoing Coffee News Franchise Agreement for which the parties have entered into this Promissory Note is terminated for any reason, then the entire debt secured hereby, together with all charges to which Holder would be entitled under the Promissory Note or by law if the Promissory Note were prepaid in full, shall be due and payable, Holder shall have the right to realize upon the security granted herein, and the payment and acceptance of any sum on account of this note shall not be considered a waiver of such right of election. The failure at any time of Holder to exercise this option shall not constitute a waiver of
the right to exercise the right at any other time.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
The 2025 Coffee News Franchise Disclosure Document states that the franchisee, as the Debtor, acknowledges and agrees to grant the Holder (presumably Coffee News) any and all licensed rights to the territory that was granted to Debtor in the Coffee News Franchise Agreement. This serves to secure the payment outlined in the Promissory Note and ensure the performance of all agreements contained within it.
According to the FDD, if the franchisee fails to pay interest, principal, or any other amount due, or breaches any covenant or agreement, and the issue remains unresolved for more than five days, the entire debt becomes immediately payable. This also applies if the franchisee enters bankruptcy, receivership, or insolvency proceedings, or if the Coffee News Franchise Agreement is terminated for any reason.
In such cases, Coffee News has the right to realize upon the security granted, including selling the franchise that was originally granted to the franchisee. The acceptance of any payment does not waive Coffee News's right to exercise this option. This clause ensures that Coffee News has a secured interest in the franchise rights as collateral for the promissory note, protecting their financial interests in case of franchisee default or termination of the franchise agreement.