Can the terms of the loan note for a Dryer Vent Squad franchise be modified verbally?
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)
Based on the 2024 Dryer Vent Squad Franchise Disclosure Document, the loan note for a Dryer Vent Squad franchise cannot be modified verbally. The document specifies that if the borrower defaults, the lender must provide written notice, indicating that modifications or waivers of the loan terms require written documentation. This protects both the franchisee and franchisor by ensuring that all agreements are documented and legally binding.
Specifically, if a Dryer Vent Squad franchisee defaults on their loan, the lender must provide written notice, and the franchisee has a minimum allotted time by law to cure the default. Only after this period can the lender accelerate the loan and demand immediate payment of all outstanding sums. This written notice requirement implies that any changes to the loan terms or waivers of default must also be in writing to be enforceable.
For a prospective Dryer Vent Squad franchisee, this means that any discussions or agreements regarding the loan terms must be documented in writing to be valid. Franchisees should ensure they receive written confirmation of any modifications to the loan note to avoid potential disputes or misunderstandings. This requirement for written documentation provides a clear and legally sound framework for managing the loan and protecting the interests of all parties involved.