Who is considered the 'Debtor' in the 1-800-GOT-JUNK? General Security Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS GENERAL SECURITY AGREEMENT is made effective ______________________.
BY:
_________________, having an office at ________________________________
(the "Debtor")
IN FAVOUR OF:
1-800-GOT-JUNK?
LLC, a Delaware limited liability company with an office at
301 – 887 Great Northern Way, Vancouver, BC, V5T 4T5, Canada
(the "Secured Party")
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the 'Debtor' in the General Security Agreement is the franchisee. This is clarified in Exhibit G, which outlines the agreement. The agreement is made effective by the franchisee, who is referred to as "(the 'Debtor')." The agreement is in favor of 1-800-GOT-JUNK? LLC, which is referred to as "(the 'Secured Party')."
This means that the franchisee is the party granting a security interest to 1-800-GOT-JUNK? LLC. The security interest protects 1-800-GOT-JUNK? LLC in case the franchisee fails to meet their financial or contractual obligations. The franchisee is essentially pledging assets as collateral to secure their obligations under the franchise agreement.
Specifically, Schedule A of the General Security Agreement further defines the Debtor by requesting information such as the full legal name, DBA names, date and place of birth if the debtor is an individual. If the debtor is an entity, the schedule requests the type of entity, jurisdiction of formation, and states where authorized to carry on business. This information is used to clearly identify the franchisee as the Debtor in the agreement.