Item 10 FINANCING
Neither we nor any agent or affiliate efferoffers direct or indirect financing
to you, er-guarantoeguarantees
any of your
noto. loasonotes. leases or obligations, or has any practice or intent to sell,
assign or discount to a 3rd party all or part of anv of vour
financing arrangements.
We do not know whether you will be able to obtain
financing for partall or aHpart
of your
investment and, if so, the terms of the financing. We do not receive direct or
indirect payments for placing financing. Wo do not guarantee your
obligations to 3rd parties.
Under the franchise
agreement, you grant us a security interest in accounts, accounts receivable,
contracts, equipment, fixtures, furniture, general intangibles, goods,
inventory, machinery, materials, proceeds, supplies, and other personal
property owned, acquired or used by you in connection with the franchise
business. If you default in your obligations to us, we may collect under this
security interest. We have not and do not intend to sell or assign our rights
under this security agreement.
After you sign the franchise agreement, at your
request, in order to contribute to speedy approval of 3rd party
financing, we may assist you in your preparation of a business plan, pro-forma
financial statement, balance sheet and other information generally needed to
attach to an application for financing. If you make a written request, under
certain circumstances, we will agree to subordinate our security interest to 3rd
party lenders.
