According to the Aerus security agreement, what does the term 'Code' refer to?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Definitions. In addition to the words and terms defined elsewhere in this Security Agreement, the following words and terms shall have the following meanings, respectively, unless otherwise required by the context:
- (a) Words and terms used herein which are defined in Section 9 of the Code shall, unless the context otherwise requires, have the meanings therein provided;
- (b) "Code" shall mean the Texas Uniform Commercial Code, Texas Business and Commerce Code § 1.101, et seq., as amended from time to time;
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the term 'Code' within the Consigned Products Security Agreement refers to the Texas Uniform Commercial Code. Specifically, it means Texas Business and Commerce Code § 1.101, et seq., as amended from time to time. This definition is important because the Security Agreement uses terms defined in the Code, and those terms will have the meanings provided in the Texas Uniform Commercial Code unless the agreement specifies otherwise.
For a prospective Aerus franchisee, understanding this definition is crucial because the Security Agreement governs the collateral provided to Aerus. The Texas Uniform Commercial Code dictates the legal framework for secured transactions, including the rights and responsibilities of both the secured party (Aerus) and the debtor (the franchisee). This includes aspects like attachment, perfection, and priority of security interests.
Therefore, franchisees should familiarize themselves with the relevant sections of the Texas Uniform Commercial Code to fully understand their obligations and rights under the Consigned Products Security Agreement. This knowledge can help them manage their business operations and financial responsibilities effectively, and also understand Aerus's rights regarding the collateral.