What delivery methods are acceptable for notices related to the Dryer Vent Squad loan?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
7. ACCELERATION. If the Borrower is in default under this Note or is in default under another provision of this Note, and such default is not cured within the minimum allotted time by law after written notice of such default, then Lender may, at its option, declare all outstanding sums owed on this Note to be immediately due and payable.
This includes rights of possession to the Security mentioned in Section 3.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, if a Dryer Vent Squad franchisee defaults on their loan, the lender must provide written notice of the default. After this written notice, the franchisee has a minimum time allotted by law to cure the default. If the default remains uncured after this period, the lender can declare all outstanding sums immediately due and payable. This acceleration also includes rights of possession to the security mentioned in Section 3 of the loan agreement.
This means that Dryer Vent Squad franchisees need to understand the default terms of any loan they obtain and ensure they can meet their obligations. Failure to do so could result in the lender demanding immediate payment of the entire loan balance and potentially seizing the franchisee's Dryer Vent Squad business assets, including franchise rights, equipment, leases, phone numbers, and customer base, as these serve as security for the loan.
While the FDD specifies that written notice is required, it does not detail the acceptable methods of delivery for this notice (e.g., certified mail, email, personal delivery). It is important for a prospective franchisee to clarify with Dryer Vent Squad and the lender what constitutes acceptable delivery of default notices to ensure they are properly informed of any default and their opportunity to cure it.