Under what conditions can Deck Medic accelerate the outstanding sums owed on the note?

According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic can demand immediate payment of all outstanding sums on a promissory note if the borrower defaults on the note or any other provision within it. However, this acceleration can only occur if the borrower fails to correct the default within the minimum time frame required by law after receiving written notice of the default. This acceleration also includes rights of possession to the security mentioned in Section 3 of the agreement.

This means that if a Deck Medic franchisee fails to make payments or violates any other term of the promissory note, Deck Medic has the right to demand the entire remaining balance immediately. However, Deck Medic must first provide the franchisee with a written notice of the default and allow them a legally mandated period to fix the issue. If the franchisee does not cure the default within that time, Deck Medic can then accelerate the debt.

This provision protects Deck Medic by allowing them to quickly recover funds if a franchisee is not meeting their financial obligations. However, it also provides some protection to the franchisee by requiring Deck Medic to give them a chance to correct the default before accelerating the debt. Prospective franchisees should understand the terms of the promissory note and ensure they can meet their obligations to avoid default and potential acceleration of the debt.