Restaurant Franchising, 3rd Edition

Franchising Agreements and Legal Documentation 115

when he or she actually executes the fi nancing agreement. Anticipating

such a situation, the amended Rule provides disclosure of what the rate of

interest, plus fi nance charges, expressed on an annual basis, was on a spec-

ifi ed recent date. A franchisor may include a footnote stating that the inter-

est rate may vary or state a formula by which the rate may change until the

fi nancing agreement is signed. Where the rate may change during the life

of the loan, disclosure of that fact is required under the Item 10 “catch-

all” requirement, which calls for disclosure of “other material fi nancing