What is the Aerus debtor's obligation regarding the location of the collateral?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
he Franchise Agreement.
(c) Exact Legal Name. Debtor shall not change its legal name in any manner except a change in name permitted following compliance with the provisions of subparagraph (e) below. Debtor does not and will not use any other name of trade style to identify itself to the public.
(d) Location of Books and Records. Debtor's original books of account and records relating to the Collateral are, and shall continue to be, kept at its principal place of business. Debtor shall not permit any original books of account or records concerning the Collateral to be located at any other address except such new locations as it may establish in accordance with subparagraph (e) below.
(e) Establishment of New Location or Name. 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.
(f) Inspection.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the debtor, referring to the franchisee, has specific obligations regarding the location of the collateral. The franchisee's original books of account and records relating to the collateral must be kept at their principal place of business. The franchisee cannot permit these original books or records to be located at any other address, except for new locations established according to specific procedures.
If an Aerus franchisee wants to establish a new location for their principal place of business where collateral or related records may be kept, or if they want to alter their legal name or jurisdiction of formation, they must first provide written notice to Aerus. This notice must include any information reasonably requested by Aerus. The franchisee must also take any action directed by Aerus to maintain the perfection and first priority of the security interest in the collateral granted to Aerus.
Furthermore, if collateral is removed from the premises by persons not within the control of the franchisee, the franchisee is obligated to promptly notify Aerus. These stipulations ensure that Aerus maintains control over and access to the collateral, which is crucial for protecting their security interest in the event of default or other financial issues with the franchisee. This is a fairly standard practice in franchising, as franchisors need to protect their assets and ensure compliance with the franchise agreement.