What is the Aerus debtor required to provide to the Secured Party when taking 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. This notice must include any information Aerus reasonably requests regarding the new title.
Additionally, the Debtor must take any action directed by Aerus that is deemed necessary to maintain the perfection and first priority of the security interest in the Collateral granted to Aerus. This ensures that Aerus's financial interests are protected even with the change in title.
This requirement protects Aerus by ensuring they are informed of any changes to the Debtor's business that could affect the Collateral and their security interest. It also allows Aerus to take necessary steps to maintain their secured position, reducing their risk in the financing arrangement.