What must an Aerus debtor do if collateral is removed from the premises by persons not within their control?

According to the 2025 Aerus FDD, if collateral is removed from the debtor's premises by individuals not under their control, the debtor is required to promptly notify the secured party. This notification must be made in accordance with the applicable provisions outlined in the security agreement.

This provision is designed to protect the secured party's interest in the collateral. By requiring prompt notification, Aerus aims to stay informed about the location and status of the collateral, even when its removal is outside the debtor's direct control. This allows Aerus to take appropriate steps to safeguard its security interest and prevent potential loss or damage to the collateral.

For a prospective Aerus franchisee, this means understanding the importance of maintaining control over the collateral and adhering to the notification requirements in the event of unauthorized removal. Failure to promptly notify Aerus could potentially lead to a breach of the security agreement and trigger default remedies. Therefore, it is crucial for franchisees to familiarize themselves with the specific notification procedures outlined in their security agreement and to act swiftly if collateral is removed by external parties.