Is a Promissory Note included as an exhibit to the Dryer Vent Squad Franchise Agreement?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
onal Territories. Note payments are not refundable. Note obligations are not refundable. 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. Except as disclosed above, we do not offer financing that requires you to waive notice, confess judgment or waive a defense against us or the
lender, although you may lose your defenses against us and others in a collection action on a Note that is sold or discounted. We have no plans to sell or assign any Note from you or any other franchisee to a third party; however, we have the right to do so in the future.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, a copy of the form Promissory Note is included as an exhibit to the Franchise Agreement. Specifically, Exhibit 7 to the Franchise Agreement contains the form of the Promissory Note.
Should Dryer Vent Squad offer financing, the franchisee must sign the Promissory Note when signing the Franchise Agreement. The FDD states that under the terms of the Note, the franchisee will be waiving certain legal rights. These include waiving the right to receive notices of default, defenses, and other legal rights, such as the 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.
Dryer Vent Squad states that it has no plans to sell or assign any Note from the franchisee or any other franchisee to a third party; however, they have the right to do so in the future. If Dryer Vent Squad sells or assigns the note, they will not remain primarily obligated to provide the financial goods or services.