Franchisee Notes Clause Samples
The 'Franchisee Notes' clause establishes the requirements and procedures for any promissory notes or similar debt instruments issued by the franchisee, typically in connection with financing obligations under the franchise agreement. This clause may specify the terms under which such notes are created, their repayment schedules, interest rates, and the rights of the franchisor in the event of default. By clearly outlining these terms, the clause helps ensure that both parties understand their financial obligations and remedies, thereby reducing the risk of disputes related to franchisee debt.
Franchisee Notes. As of the applicable New Asset Addition Date with respect to a Franchisee Note, acquired or entered into on such New Asset Addition Date:
(i) Such agreement is genuine, and is the legal, valid and binding obligation of the parties thereto and is enforceable against the parties thereto in accordance with its terms (except as such enforceability may be limited by bankruptcy or insolvency laws and by general principles of equity, regardless of whether such enforceability shall be considered in a proceeding in equity or at law); (ii) Such agreement complies in all material respects with all applicable Requirements of Law; (iii) The Franchisee related to such agreement is not the subject of a bankruptcy proceeding; and (iv) Except as required by applicable Requirements of Law, such agreement is freely assignable by the applicable Securitization Entities.
Franchisee Notes. (a) The Company shall pledge or cause to be pledged Eligible Franchisee Notes in an outstanding unpaid principal amount equal to 1.25 multiplied by the then outstanding principal balance of the Loans (the "Minimum Secured Amount"). The Company shall first pledge Company Franchisee Notes which constitute Eligible Franchisee Notes. To the extent the aggregate unpaid principal balance of such Company Franchisee Notes is less then the Minimum Secured Amount, ▇▇▇▇▇▇▇▇ ▇▇▇, Sterling Vision California and/or Sterling DKM shall pledge BOS Franchisee Notes, California Franchisee Notes and DKM Franchisee Notes, respectively, to cover the shortfall. To the extent the Company, ▇▇▇▇▇▇▇▇ ▇▇▇, Sterling Vision California or Sterling DKM, collectively, do not have Eligible Franchisee Notes in an aggregate unpaid principal amount equal to the Minimum Secured Amount, the Company shall not be deemed to be in default under this Section 6.13, if the Company, Sterling DKM, Sterling Vision California and/or ▇▇▇▇▇▇▇▇ ▇▇▇, has pledged to the Bank Eligible Franchisee Notes in an amount not less than the outstanding principal amount of the Loans and the Company maintains Eligible Royalty Receivables and/or Eligible Rent Receivables in an aggregate amount equal to (x) the sum of the pledged Eligible Franchisee Notes less (y) the Minimum Secured Amount; provided, however, the aggregate amount of Eligible Rent Receivables pledged hereunder shall not exceed $250,000. Eligible Franchisee Notes pledged pursuant to this Section 6.13 shall be held by the Bank pursuant to the terms of the applicable Debt Pledge Agreement. The Bank shall be granted a security interest in all Royalty Receivables and Rent Receivables pursuant to the applicable Security Agreement.
(b) Provided no Event of Default or event which upon lapse of time, notice or both would constitute an Event of Default shall have occurred and be continuing and further provided the Bank shall have received Eligible Franchisee Notes in an aggregate amount equal to the then Minimum Secured Amount, the Bank shall release from time to time, Company Franchisee Notes, DKM Franchisee Notes, California Franchisee Notes and/or BOS Franchisee Notes in an aggregate principal amount equal to the aggregate principal amount of all Eligible Franchisee Notes pledged to the Bank pursuant to the applicable Debt Pledge Agreements less the Minimum Secured Amount for the sole purpose of and in connection with the sale of such notes in accordance with Sect...
Franchisee Notes. All the original Franchisee Notes, duly indorsed in favor of the Lender, and the original copy (or a copy thereof, certified as true and correct by the Borrower) of all Franchisee Documents related thereto and as generally described in Schedule 1 hereto;
Franchisee Notes. Unless prohibited by Applicable Law, Borrower hereby authorizes Agent to execute and file any such financing statement on Borrower's behalf. The parties agree that a carbon, photographic or other reproduction of this Agreement shall be sufficient as a financing statement and may be filed in any appropriate office in lieu thereof.
Franchisee Notes