Where can a Dryer Vent Squad franchisee find a copy of the form Note?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
If, at your request, we elect to make financing available to you, you must sign the Note at the time you sign the Franchise Agreement. A copy of the form Note is attached as Exhibit 7 to the Franchise Agreement.
Under the Note terms, you will be waiving legal rights that include a waiver of your right to receive notices of default and other legal rights and defenses, including your right to diligence, demand, presentment for payment, notice of nonpayment and protest, and notice of amendments or modifications. You also waive any defense under the statute of limitations and allow that a confessed judgment may be taken against you.
Source: Item 10 — FINANCING (FDD pages 29–30)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, a copy of the form Note, which is a promissory note, is included as Exhibit 7 to the Franchise Agreement. This Note is relevant if Dryer Vent Squad offers direct financing to a franchisee for the initial franchise fee. The franchisor is not obligated to provide this financing, and the decision to do so is based on internal factors.
If Dryer Vent Squad does provide financing, the franchisee will be responsible for repaying the Note, including finance charges and interest. If the franchisee is a corporation, the individual owners must personally guarantee the repayment of the Note and all sums due. The franchisee must return an original signed copy of the Note to Dryer Vent Squad, and the franchisor has the right to assign the Note to a third party.
Furthermore, if the Note is for a new Dryer Vent Squad Business, the franchisee is required to open the business within six months of receiving the funding. The Note also contains terms under which the franchisee waives certain legal rights, including the right to receive notices of default and other legal rights and defenses. This includes waiving rights to diligence, demand, presentment for payment, notice of nonpayment and protest, notice of amendments or modifications, defenses under the statute of limitations, and allowing a confessed judgment to be taken against them.