What is the Aerus debtor required to pay during the term of the Security Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Debtor has executed and delivered to Secured Party a certain Secured Promissory Note of even date herewith (including any replacement, renewal, revision or refinancing thereof, the "Note") to evidence the indebtedness of Debtor to Secured Party; and WHEREAS, as an inducement to Secured Party to extend credit as evidenced by the Note, Debtor desires to secure the Note in the manner hereinafter set forth;
NOW, THEREFORE, for and in consideration of the Debt (as hereinafter defined), and other good and valuable consideration rendered by Secured Party to Debtor, and intending to be legally bound hereby, the parties hereto covenant and agree as follows:
- (d) "Debt" shall mean (i) all the indebtedness of Debtor evidenced by the Note, both principal and interest, and any and all extensions, renewals or refinancing thereof in whole or in part, (ii) all costs and expenses incurred by Secured Party in any collection of such indebtedness, including, without limitation, reasonable attorney's fees and costs, (iii) all future advances made by Secured Party for the protection and preservation of the Collateral or any portion thereof, (iv) all other obligations and liabilities of Debtor to Secured Party from time to time arising under or pursuant to this Security Agreement, (v) all indebtedness and obligations arising under or incurred in connection with the transactions co
- (g) Expense of Secured Party.
Debtor shall, on demand, reimburse Secured Party for all expenses, including the reasonable fees and expenses of legal counsel for Secured Party, incurred by Secured Party in connection with the enforcement of this Security Agreement and the Note, and the collection or attempted collection of the Note.
Perfection of Security Interest.
Debtor shall pay the cost of filing or recording this Security Agreement and any related financing statement, in all public offices and the cost of all searches of records, wherever filing or recording or searching of records is deemed by Secured Party to be necessary.
- (a) Default in Payment of Note.
Debtor shall fail to pay when due (whether on the date scheduled for payment, upon acceleration, at maturity or otherwise) any payment of principal or interest upon the Debt.
- (f) Remedies Cumulative, No Waiver.
All rights and remedies given by this Security Agreement and the Note are cumulative and not exclusive of any thereof or of any other rights or remedies available to Secured Party, and no course of dealing between Debtor (individually and collectively) and Secured Party or any delay or omission in exercising any right or remedy shall operate as a waiver of such right or remedy, and every right and remedy may be exercised from time to time and as often as shall be deemed appropriate by Secured Party.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the debtor is obligated to make several payments during the term of the Security Agreement. The debtor must pay the principal and interest on the Secured Promissory Note, including any extensions, renewals, or refinancing. Additionally, the debtor is responsible for all costs and expenses incurred by Aerus in collecting any outstanding debt, including reasonable attorney's fees and costs. The debtor must also cover all future advances made by Aerus to protect and preserve the collateral. Finally, the debtor is responsible for all other obligations and liabilities to Aerus arising under the Security Agreement.
Furthermore, the Aerus debtor is required to reimburse Aerus for all expenses, including reasonable legal counsel fees, incurred in enforcing the Security Agreement and the Note, as well as for the collection or attempted collection of the Note. The debtor must also pay the costs associated with filing or recording the Security Agreement and any related financing statement, along with the costs of all record searches deemed necessary by Aerus.
In the event of default, which includes failure to pay principal or interest on the debt, failure to pay other borrowed money, default under any material agreement, insolvency, or levy/repossession of collateral, Aerus has specific rights. These rights and remedies are cumulative and do not waive any other available rights or remedies. This means Aerus can pursue multiple avenues to recover the debt. The agreement also specifies that the terms apply to successors and assigns of both parties, ensuring continuity even if ownership changes.