Does the 1-800-GOT-JUNK? General Security Agreement specify any requirements for the Debtor to notify the Secured Party of any changes to the Collateral?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
(k) give immediate notice to the Secured Party in the event of a change of the individual, corporate or trade name or of a change of the residential or business address of the Debtor; (l) give immediate notice to the Secured Party of any sale of any of the Collateral and of the serial number, year, make and model of all Serial Numbered Goods at any time included in the Collateral or such other information as may be necessary from time to time for Secured Party to properly perfect its security interest in the Collateral;
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the General Security Agreement does include specific requirements for the Debtor (the franchisee) to notify the Secured Party (1-800-GOT-JUNK? LLC) regarding changes to the Collateral.
Specifically, the franchisee must give immediate notice to 1-800-GOT-JUNK? of any sale of any of the Collateral. This notification must include the serial number, year, make, and model of all Serial Numbered Goods at any time included in the Collateral. The franchisee must also provide any other information that may be necessary for 1-800-GOT-JUNK? to properly perfect its security interest in the Collateral.
Furthermore, the franchisee is required to give immediate notice to 1-800-GOT-JUNK? in the event of a change of the individual, corporate, or trade name, or of a change of the residential or business address of the Debtor. This ensures that 1-800-GOT-JUNK? maintains accurate and up-to-date information regarding the franchisee and the location and status of the secured assets.
These notification requirements are in place to allow 1-800-GOT-JUNK? to maintain a perfected security interest in the Collateral, which is crucial for protecting their financial interests. Failure to comply with these notification requirements could potentially result in a default under the General Security Agreement.