What is the Aerus debtor's obligation regarding the location of the principal place of business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
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, must maintain their original books of account and records related to the collateral at their principal place of business. The franchisee cannot move these records to any other address unless they establish a new location following specific procedures outlined in the agreement.
If the franchisee intends to establish a new location for their principal place of business, where collateral or original books of account and records may be kept, they must provide written notice to Aerus. This notice should include any information Aerus reasonably requests regarding the new location. Additionally, the franchisee must take actions directed by Aerus to ensure the continued perfection and first priority of the security interest in the collateral granted to Aerus.
These stipulations ensure that Aerus maintains control over its collateral and can effectively monitor the franchisee's business operations. The franchisee must comply with these location-related obligations to avoid violating the terms of the security agreement and potentially facing default consequences. This also allows Aerus to inspect the collateral and examine the franchisee's books and records during normal business hours.