ITEM 10. FINANCING
We request that your
pre-opening fees be paid in one lump sum. If you require third party financing
we will finance your pre-opening fees and a portion of your start-up costs of $
179.500 by allowing you to pay
these fees and costs in up to 4 separate installment payments. We do not
guarantee your obligations to third parties. We may vary the financing terms
and conditions or choose not to provide financing at our discretion. The
following chart is for illustrative purposes only, and summarizes typical terms
of the installment payment options we make available to you. .
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Loss
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of
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First
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Second
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Third
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Legal
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Finance
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Amount
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Deposit
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Term
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APR
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Installment
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Install mem
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Installment
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Prepay
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Security
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Liability on
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Right
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Program
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Financed
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4
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Payment
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Payment
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Payment
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Penalty
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Required
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Default
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on
Defau II
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Prc-
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$179,500
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$ 15.00
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30 -
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Non
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A
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A
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A
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None
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Sole
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Late
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None"
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Opcning
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0''
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180
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e
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minimum
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minimum
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minimum
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Proprietor
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penalty:
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Fees''
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da>s.
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of$76.500
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of $76.500
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of$11.000
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. Partner.
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accelerai ion
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Financing
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is due when you sign ihe
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is due when you attend your initial
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is due when we
begin the finish-
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or
Sharehold er
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of amounts due: fees
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Finance Program
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Amount Financed
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Deposit
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Term
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APR i
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First Installment Payment
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Second Installment Payment
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Third Installment Payment
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Prepay
Penally
s
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Security Required
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Liability on Default
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Loss
of Legal Right
on Dcfau
It
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franchise agreement/ or your receive your loan
proceeds whichever occurs first
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training
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oui ofyour store
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guaranty''1
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Notes
1 The pre-opening fee of
$179,500 is applied to obtaining a franchise territory and for the purchase of
building materials, equipment, shop machinery, inventory, signage, fixtures,
displays, supplies, initial training, operations, logistics, staging costs and
shop development (finish-out) services.
2 We may assist creditworthy
franchisees with their Pre-Opcning Fees by allowing the fees to be paid in up
to 4 installments. You must secure your own financing from a third-party
lender. We have no arrangements with third-party lenders to provide financing.
The financed amount is evidenced by a Purchase Agreement (the same as or
similar to Exhibit E to the Disclosure Document) and is payable over 30 to 180
days in payments as outlined above. We reserve the right to vary any terms of
financing. If we are able, we will help you find a third-party lender for
financing, but we are not obligated to do so. We have no arrangements to sell,
assign, or discount to a third-party all or part of our franchisees'' financing
arrangements. Currently, we do not derive revenue from third-party lenders as a
result of financing arrangements with our franchisees. Also, you may lose
defenses against the third-party lender as a result of the sale or assignment.
:i A deposit of $15,000 of the
pre-opening fee is required at the time you sign the Purchase Agreement and
conditionally reserves one franchise and a protected territory for a 6-month
planning period.
4 No annual interest is due to
us. You may have to pay to your third-party lender, an annual percentage rate
("APR") on the unpaid principal that you owe to them.
5 There is no penalty for
prepaying any installment, any portion, or all of the amount financed to us
before installment payments are due.
6 We obtain a Purchase Agreement
from you and all of the partners and shareholders for the amount financed. The
Purchase Agreement must be secured by all of your assets of the Franchised Golf
Store.
7 If you fail to timely make an
installment payment, we may charge a late penalty. We may also require immediate
payment of the unpaid balance of the financed amount, terminate the Franchise
Agreement and recover from you and your guarantors our costs of enforcement,
including attorneys'' fees and costs.
8 Neither you nor we will waive
any of our legal rights or remedies in this agreement. You. your partners and
shareholders must sign a guaranty the same as or similar to the form of
Unlimited Guaranty attached as Exhibit 3 to the Franchise Agreement, and this
form of Unlimited Guaranty contains the following waivers that you, your
partners and shareholders agree to:
(a) a waiver of your right to
obtain acceptance and notice of our acceptance of the obligations each of you
agree to undertake when you sign the Unlimited Guaranty;
(b) a waiver of the right to
protest and notice of default to any party with respect to the indebtedness or
non-performance of any obligations guaranteed;
(c) a waiver of any right to
require that an action be brought against you or any other person as a
condition of the guarantor''s liability; and
(d) a waiver of the right to any
notices or legal or equitable defenses each of the guarantors may have.
