What is the Aerus debtor prohibited from doing regarding the removal of collateral from the premises?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Removal of Collateral.
Except for the sale of Inventory in the ordinary course of business, Debtor covenants and agrees that the Collateral will remain at the location stated on the Schedule of Collateral (the "Premises") and that without the prior written consent of Secured Party, Debtor shall not remove or suffer or permit the removal of the Collateral from the Premises.
If, however, the Collateral is removed from the Premises by persons not within the control of Debtor, Debtor will promptly notify Secured Party in accordance with the applicable provisions of this Security Agreement.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the debtor is restricted from removing collateral from the premises without prior written consent from the secured party. Specifically, the FDD states that the collateral will remain at the location stated on the Schedule of Collateral, referred to as "the Premises."
This restriction does not apply to the sale of inventory in the ordinary course of business. However, any other removal of collateral requires the secured party's written approval. If collateral is removed by individuals outside of the debtor's control, the debtor is obligated to promptly notify the secured party.
This provision protects Aerus's security interest in the collateral by ensuring that the assets remain at a known location unless otherwise agreed upon. For a prospective franchisee, this means they must seek permission before moving any secured assets. Failure to comply with this requirement could potentially trigger an event of default under the security agreement.