Does the collateral for Aerus include future inventory acquired by the consignee?

According to Aerus's 2025 Franchise Disclosure Document, the collateral includes both present and future inventory. The security agreement specifies that the collateral includes "all present and future right, title and interest of Consignee in and to all the inventory now owned or hereafter acquired." This means that any inventory the franchisee currently owns or will acquire in the future is considered collateral.

This collateral extends beyond just the inventory itself. It also encompasses all attachments, renewals, replacements, additions, accessories, increases, parts, substitutes, and proceeds from the inventory. Additionally, it includes all guaranties, claims, rights, remedies, and privileges related to the inventory. This comprehensive definition ensures that Aerus has a broad claim on assets related to the consigned products.

For a prospective Aerus franchisee, this means that the security interest Aerus holds is not limited to the initial inventory provided. It also covers any new inventory acquired over time. This is a significant consideration, as it affects the franchisee's ability to use their inventory as collateral for other financing or business purposes. The franchisee should be aware that Aerus's security interest takes priority over other potential creditors regarding the consigned products.