Upon whom is the Cool Binz Promissory Note binding?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This Promissory Note is binding upon and will insure to the benefit of the parties and their successors, heirs, and assigns.
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- The persons executing this Note on behalf of the Undersigned acknowledge their authority to do so.
As provided in this Franchise Agreement this Promissory Note is personally guaranteed by
HOLDER: UNDERSIGNED: Date: [FRANCHISEE NAME] [NAME], Individually
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the Promissory Note is binding upon the parties involved, including their successors, heirs, and assigns. This means that the obligations outlined in the note extend not only to the original signers but also to anyone who inherits their rights or responsibilities. The document also states that individuals signing on behalf of an entity acknowledge their authority to do so, reinforcing the legal enforceability of the note.
Specifically, the franchisee is required to personally guarantee the Promissory Note. This indicates that the franchisee is personally liable for the obligations under the note, even if the franchise is operated through a business entity. This personal guarantee underscores the seriousness of the financial commitment and ensures that Cool Binz has recourse to the franchisee's personal assets if the business fails to meet its obligations.
This clause ensures that Cool Binz can pursue the debt even if the original franchisee transfers ownership or the business is passed down through inheritance. It also reinforces the legal weight of the document, as all parties are expected to understand and agree to its terms before signing. This provision is designed to protect Cool Binz's financial interests and ensure that all obligations are met, regardless of changes in ownership or circumstances.