What must an Aerus debtor do if they desire to take title to the Collateral?
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 (franchisee) desires to take title to the Collateral, they must first provide written notice to Aerus, the Secured Party, of their intention. This notice must include any information Aerus reasonably requests regarding the matter.
The Debtor must also take action as directed by Aerus to ensure the continued perfection and first priority of the security interest in the Collateral. This means Aerus retains its secured position, regardless of the change in the Collateral's title.
In practical terms, this requirement allows Aerus to maintain control over its security interest in the franchisee's assets, even if the franchisee's business structure or ownership changes. The franchisee must proactively inform Aerus and comply with Aerus's instructions to facilitate these changes while protecting Aerus's financial interests.