What is the definition of 'Loan' in the Creative World School promissory note?

Based on the 2025 Creative World School Franchise Disclosure Document, there is a reference to a 'Loan' within the context of a promissory note. The document states that the loan accrues interest from the date of the note, at a rate and time specified later, on the outstanding balance. This loan is subject to the terms and conditions outlined in the Creative World School Franchise Agreement.

For a prospective franchisee, this indicates that financing options, potentially involving a loan, are connected to the franchise agreement. The specific details of the loan, such as the interest rate, repayment schedule, and any associated conditions, are not detailed in this excerpt but are referenced as being 'later provided'. The loan is formalized through a promissory note, which is a legal instrument where the franchisee promises to repay a certain sum of money to Creative World School.

This arrangement suggests that Creative World School may provide or facilitate financing for franchisees, which could be beneficial for those who need assistance with the initial investment. However, it's crucial for potential franchisees to thoroughly review the franchise agreement and the promissory note to understand the full scope of their financial obligations, including interest rates, repayment terms, and any potential penalties for default. Prospective franchisees should seek legal and financial advice to fully understand the implications of the loan and its connection to the franchise agreement.