What legal rights are lost upon default of Dryer Vent Squad financing?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
| Loss of Legal Rights on Default | | Cross-default of Franchise Agreement. Waiver of notice of default and loss of defenses | |
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 franchisee who defaults on financing may lose certain legal rights. Specifically, the franchisee will experience a cross-default of the Franchise Agreement, meaning that a default on the financing automatically triggers a default on the franchise agreement itself.
Additionally, the franchisee waives the right to receive notice of default. This means Dryer Vent Squad is not obligated to formally notify the franchisee of the default before taking action. The franchisee also loses certain defenses they might otherwise have in a legal dispute.
According to Item 10, under the Note terms, the franchisee will be waiving legal rights that include a waiver of their right to receive notices of default and other legal rights and defenses, including their right to diligence, demand, presentment for payment, notice of nonpayment and protest, and notice of amendments or modifications. The franchisee also waives any defense under the statute of limitations and allows that a confessed judgment may be taken against them.