Does the 1-800-GOT-JUNK? General Security Agreement specify any requirements for the Debtor to notify the Secured Party of sales?
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")
ARTICLE I - OBLIGATIONS SECURED
1.1
This Security Agreement and the assignments, mortgages, pledges, charges and security interests
hereby created are in addition to and not in substitution for any other assignment, mortgage, pledge, charge
or security interest now or hereafter held by the Secured Party from the Debtor or from any other Person
whomsoever and shall be general and continuing security for the due performance of all debts, liabilities,
and obligations of the Debtor to the Secured Party, including the obligations contained in one or more
franchise agreements (the "Franchise Agreement") made between the Secured Party (as Franchisor) and
the Debtor (as Franchisee) and this Security Agreement (all of said debts, liabilities and obligations are
hereinafter collectively called the "Obligations").
ARTICLE II - SECURITY INTEREST
2.1
As general and continuing security for the payment and performance of the Obligations, the Debtor
hereby grants to the Secured Party a security interest in, and assigns, charges, mortgages and pledges to and
in favour of the Secured Party, all of the Debtor's present and after acquired goods, securities, instruments,
documents of title, chattel paper, licenses, intangibles and money located on, relating to or arising in
connection with a Franchised Business (as defined in the Franchise Agreement) including, without limitation,
all vehicles, equipment and accessories and all proceeds from the foregoing wheresoever situate (collectively,
the "Collateral").
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts from the 1-800-GOT-JUNK? General Security Agreement do not specify any explicit requirements for the Debtor (franchisee) to notify the Secured Party (1-800-GOT-JUNK?) of sales. The agreement focuses on establishing a security interest in the Debtor's assets to secure their obligations to 1-800-GOT-JUNK?.
The agreement outlines the obligations secured, which include debts, liabilities, and obligations contained in the franchise agreement. It also details the security interest granted to 1-800-GOT-JUNK? in the Debtor's assets, such as vehicles, equipment, and proceeds from the franchised business. However, it does not include any clauses that mandate the franchisee to provide regular or specific notifications regarding sales figures or transactions.
While the General Security Agreement itself doesn't mention sales notifications, it's important to note that other parts of the Franchise Agreement (referenced within the security agreement) might contain such requirements. A prospective franchisee should carefully review the entire Franchise Agreement and related documents to understand all reporting obligations. It would be prudent to ask 1-800-GOT-JUNK? directly about any requirements to report sales or other financial data as part of the franchise agreement.