MINNESOTA COMMERCE - Unhappy Franchisee

deduction from the full net cost price of the assigned installment contracts is a charge payable to Mateo as
assignee of the assigned installment contracts.
Under the current PSA New Tech Agreement the price paid by Mateo is 95% of the net cash price of the
installment contract with a refiindable reserve account.
Mateo has from time to time considered developing additional customer installment financingprograms that
may be recourse or non-recourse credit assignments, and/or may be available only to distributors who (a)
qualify to participate; (b) have a minimum of six months or more experience as a Mateo distributor; and (c) are
in compliance with their Distributorship Agreement. Currendy, however, the only Purchase Security
Agreements available are those described above. Mateo expects that if a new installment financing program is
developed and offered in the future, participadon in any such program will be voluntary.
Equipment L.;eases
In addidon to tlie two installment Financing Programs listed abeve;-Matee-6l9e-efteyS"e-f:::eas& Program for
qualified shop owners or other-ouste»ners-ef-lhe-distributoF; -The- pui^se of-this pi^gFan^--ift to-offeg-4e
qualified-eufttem^-s financing on shop equipment.—If you qualify for participation in the lease finat^sing
program, you may sen equipftiegt-4e your-eustoHwrs^^
and
jvfetee-will finanee-thepurchase under the Matoo Distributor Lease Agreement, ftoopy of whieh-is-attttobed-as
an exhibit to this Disclosure'Doeufflent:—Matoe-wtll-ptircha9e the lease frQm-^'&u-at"a-priee that"i& not less than
90% of the value of the leased equipment, but not more than the-Hflf-priee-.-4riateo-will-be-fespensible"fer-the
collection of the lease payn>ents-until paid-in-fall or until repossesoion is neceosory. If the doe-timents are not
eort'eetly and completely executed, Matee-^rtay-as&ign-the documents to you for the amount owing under the
lease at the hme of the assignment.
The current program is a non-reeourse program; Upoii ae-6ept^fiee-efthe-leftsej-Mateo-wilj-^>esH^^-redrt4 th^
distributor'^ open purchase account Icsa a roscrvo charge. Tho rooor>-o will not be looa than 90% of the aale
amount (although eufrefrt-praotioe is to credit-1-00% of the sale amount).
Mateo and/or its affiliates have in the past sold, and may in the future sell, assign, or discount, with limited
recourse, certain accounts and notes receivable. To the extent the notes, contracts, or other instruments require
Mateo to provide services to you, Mateo will remain liable to provide such services. However, the third party
to whom the note, contract or other instrument is assigned may be immune under the law to defenses to
payment you might have against Mateo.
Except as set forth above, Mateo and its affiliates (a) do not directly or indirectly offer or arrange any
financing, (b) do not receive direct or indirect payments for placing financing, and (c) do not guarantee your
obHgations to third parties.
nimu FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND
TRAINING
Except as listed below, Mateo is not required to provide you with any assistance.
Assistance Prior to Opening. Prior to beginning business under your Mateo® Distributorship, Mateo is
required to provide you with the following:
(A) Mateo will provide you with a List of Calls and Potendal Customer List (see Article 1.2 of the
Distributorship Agreement). Mateo designates List of Calls and Potendal Customer List by identifying a
minimum of 325 Potential Customers at businesses that generally employ mechanics ftnd other individuals
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Mateo 2iil2_FDD/PK ?5^35455-}4^i2QlL£ 03/09/4412