Is a promissory note with Creative World School negotiable by the lender?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| from the date of this Note at the rate and time later provided, on the balance from time to time | |
|---|---|
| remaining unpaid. The Loan represented by this Note is subject to the terms and conditions of a | |
| CREATIVE WORLD SCHOOL® Franchise Agreement dated | , 201 |
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Creative World School Franchise Disclosure Document, it is not possible to determine whether a promissory note is negotiable by the lender. While there is a reference to a loan and a promissory note, the document does not specify whether Creative World School allows the lender to negotiate the promissory note to a third party.
Item 23 includes a table with the header row and a data row that mentions a loan subject to the terms and conditions of the Creative World School Franchise Agreement. However, the specific terms and conditions related to the negotiability of the promissory note are not detailed in this section.
A prospective franchisee should seek clarification from Creative World School regarding the terms of the promissory note, specifically whether the note can be transferred or sold to another party by the lender. This information is crucial for understanding the full scope of the financial obligations and potential risks associated with the franchise agreement.