What must an Aerus debtor do if they desire to alter their exact legal name?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Debtor desires to establish a new location for its principal place of business where Collateral or original books of account or records relating to the Collateral may be kept or to alter the exact legal name of Debtor in any manner or take title to the Collateral or change its jurisdiction of formation then Debtor shall first, with respect to each new location or name or jurisdiction of formation:
(1) Give Secured Party written notice of its intention to do so and provide Secured Party with such information in connection therewith as Secured Party may reasonably request; and
(2) Take such action, as directed by Secured Party as may be necessary to maintain at all times the perfection and first priority of the security interest in the Collateral granted to Secured Party hereunder.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if a debtor wishes to change their legal name, they must first provide written notice to Aerus, the Secured Party, detailing their intention and providing any information Aerus reasonably requests. Subsequently, the debtor must take any action directed by Aerus to ensure the continued perfection and first priority of the security interest in the collateral. This requirement is outlined in the Security Agreement that the debtor enters with Aerus Franchising, LLC.
This stipulation ensures that Aerus maintains its secured interest in the collateral, which is crucial for protecting their financial stake in the franchise. By requiring prior notice and adherence to their directives, Aerus can take necessary legal and administrative steps to update relevant documents and filings, thereby preserving their priority as a secured creditor.
For a prospective Aerus franchisee, this means that any legal name change must be coordinated with and approved by Aerus. Failure to comply with these requirements could potentially result in a breach of the Security Agreement and could have legal and financial repercussions. Therefore, it is essential for franchisees to maintain open communication with Aerus regarding any changes to their legal status or business structure.