What does the collateral schedule for Aerus include regarding inventory?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
SCHEDULE OF INVENTORY COLLATERAL
All present and future right, title and interest of Debtor in and to all Inventory now owned or hereafter acquired. The above-described Inventory includes, without limitation, all attachments, renewals, replacements, additions, accessories, accessions, increases, parts, substitutes therefore and proceeds of the above and all guaranties, claims, rights, remedies and privileges relating to any of the foregoing.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the collateral schedule includes all present and future rights, titles, and interests in all inventory owned or acquired by the debtor. This inventory encompasses all attachments, renewals, replacements, additions, accessories, accessions, increases, parts, substitutes, and proceeds. It also extends to all guarantees, claims, rights, remedies, and privileges related to any of the aforementioned items.
For a prospective Aerus franchisee, this means that the franchisor has a security interest in the franchisee's inventory. This security interest protects Aerus in case the franchisee defaults on their obligations. The definition of inventory is broad, covering not only the initial products but also any related items or proceeds from those products.
This type of security agreement is common in franchising, especially when the franchisor provides initial inventory or financing. Franchisees should understand the implications of granting a security interest, including the franchisor's rights to seize and sell the inventory in the event of a default. It is important to review the Consigned Products Security Agreement in its entirety to fully understand the obligations and potential consequences.