When must the Note be signed if Dryer Vent Squad elects to make financing available?
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, if Dryer Vent Squad elects to make financing available to a franchisee, the franchisee must sign the Note at the same time as signing the Franchise Agreement. The Note is a promissory note for the amount financed, and a copy of the form Note is included as Exhibit 7 to the Franchise Agreement.
This means that if a prospective Dryer Vent Squad franchisee requires financing from Dryer Vent Squad to cover a portion of the initial franchise fee, the agreement to repay that loan becomes legally binding at the same moment the franchise agreement itself is signed. This simultaneous signing underscores the importance of carefully reviewing both documents and fully understanding the obligations under each.
Furthermore, the FDD states that under the Note terms, the franchisee will be waiving legal rights, including the right to receive notices of default, defenses, and amendments. They also waive any defense under the statute of limitations and allow that a confessed judgment may be taken against them. This highlights the significant legal and financial commitments a franchisee undertakes when accepting financing from Dryer Vent Squad and the need to seek legal counsel before signing.