What is the Aerus debtor required to do before changing its 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 (franchisee) desires to alter their exact legal name, they must fulfill specific requirements. First, the franchisee must provide Aerus written notice of their intention to change their name and supply any information Aerus reasonably requests regarding the change. Second, the franchisee must take action as directed by Aerus to ensure the continued perfection and first priority of the security interest in the collateral granted to Aerus.
This stipulation ensures that Aerus maintains its secured interest in the franchisee's assets, even with a change in the franchisee's legal name. This protects Aerus's financial stake in the franchise operation.
For a prospective Aerus franchisee, this means that changing the legal name of their business entity is not a simple administrative task. It requires advance notification to Aerus and adherence to Aerus's instructions to maintain the legal protections of the security agreement. Failing to comply could potentially result in a breach of the franchise agreement and related financial repercussions.