FINANCING
Except as stated below, we, our agents, and our
affiliates offer no financing arrangements, and we, our agents, and our
affiliates do not receive payment or other consideration for the placing of
financing, or do not guaranty any note, lease or obligation you enter into
for your The Maids� Business.
We may offer financing to
qualified prospective franchisees for up to 50% of the Initial Franchise Fee.
In addition we may offer, from time to time, financing to qualified existing
franchisees who have been in business for a minimum of 18 months, of up to 100%
of the Initial Franchise Fee for the purchase of expansion Territories. Financing is not offered for any other purpose either in connection with the
establishment or the operation of a The Maids� franchise. <-
If you qualify and accept financing from us, you must
sign the Promissory Note and the Security Agreement attached as Exhibit G to
this Offering CiroularDisclosure Document. The
Promissory Note will provide for an interest rate of 5.5% above the current
national prime rate. As of September 30, 20062007, the current
national prime rate was &257.75% and consequently we charged an
annual percentage rate of 13.7513.25%. If you are a qualified
existing franchisee and are purchasing an additional Territory, the Promissory
Note may provide for an interest rate lower than the rate stated in the
previous sentence. The interest rate is 2.15% above the current national prime rate. Consequently,
we would charge an annual percentage rate of 44r010.5%. In no event will
we charge an interest rate that exceeds the maximum allowed by law. The
Promissory Note must be paid by electronic funds transfer in scheduled monthly
installments of not more than 24 months. The Promissory Note may be prepaid at
any time without penalty. You and your spouse must personally guaranty the
Promissory Note. We will retain a security interest in your Business or other
assets.
Under the Promissory Note, you waive: (1) the right to
claim or enforce any right of offset, counterclaim, recoupment or breach in any
action brought to enforce your obligations under the Note (Section 7); (2)
demand, presentment for payment, notices of nonperformance or nonpayment,
protest and notice of protest, notice of dishonor, diligence in bringing suit
and notice of acceleration and nonpayment may be extended or Note renewed
(Section 8); (3) questions of governing law, personal jurisdiction and
convenience of forum and venue (Sections 14 and 16); (4) trial byjury (Section
15); and (5) all claims that you may have against us and any persons and
entities related to us, other than our obligations under the Franchise
Agreement accruing on and after the date of the Promissory Note. If any of the
events of default described in Section 5 of the Note occur, the entire unpaid
principal and accrued interest of the Note will become immediately due and
payable without further notice. Under Section 9 of the Note, you agree to pay
all of our expenses and costs of collection, including attorneys'' fees and
expenses, court costs, costs of sale and costs of maintenance and repair we
incur in connection with the enforcement of the Note, collection of amounts due
and sale or other disposition of any collateral.
Under the Security Agreement,
you waive: (3) questions of governing law, personal jurisdiction and
convenience of forum and venue
(Sections 7.3 and 7.5); and (2) trial by jury (Section 7.4).
A default under the Franchise Agreement or any other
agreement with us constitutes a default under the Promissory Note (Section 5)
and the Security Agreement (Section 5). A default under the Promissory Note or
the Security Agreement constitutes a default under the Franchise Agreement,
which gives us the right, among other remedies, to terminate the Franchise
Agreement. We require you to sign a Personal Guaranty to the Franchise
Agreement.
We may assign or discount any
Promissory Note you sign.
In addition, as of the date
of this Franchise Disclosure Document, we expect to enter into an agreement
with BeneTrends. Inc. under which we will receive a referral fee of $500 for
each The Maids� franchisee that works with BeneTrends. Inc. to access its 401 k
or other retirement funds to finance its franchise.
We receive
no payments from any person for the placement
of financing with such porson.
