factual

Does the definition of 'Collateral' for Aerus include cash deposited with Aerus LLC?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (c) "Collateral" shall mean and include all of Debtor's now owned or hereafter acquired assets, whether tangible or intangible, including without limitation all of Debtor's right, title and interest in and to each of the following, wherever located and whether now existing or hereafter arising: (i) all accounts; (ii) all Inventory; (iii) all Equipment; (iv) all contract rights; (v) all general Intangibles, including payment Intangibles; (vi) all Intellectual Property; (vii) all deposit accounts; (viii) all investment property; (ix) all instruments, including promissory notes; (x) all Chattel Paper; (xi) all Goods; (xii) all Documents; (xiii) all insurance and certificates of insurance pertaining to any and all items of Collateral; (xiv) all files, correspondence, computer programs, tapes, disks and related data processing software which contain information identifying or pertaining to any of the Collateral or any Account Debtor or showing the amounts thereof or payments thereon or otherwise necessary or helpful in the realization thereon or the collection thereof; (xv) all cash deposited with Secured Party or any affiliate thereof, including Aerus LLC; (xvi) all property described on the Schedules of Collateral attached hereto and all attachments, accessories and parts used or intended to be used with such property (including all substitutions and replacements thereof and accessions thereto); and (xvii) any and all products and cash and

Source: Item 23 — Receipts (FDD pages 74–305)

What This Means (2025 FDD)

According to Aerus's 2025 Franchise Disclosure Document, the definition of 'Collateral' does include cash deposited with Aerus LLC. Specifically, the definition encompasses all of the Debtor's assets, both tangible and intangible, whether currently owned or acquired in the future.

This broad definition extends to various asset types, including accounts, inventory, equipment, contract rights, general intangibles, intellectual property, deposit accounts, investment property, instruments, chattel paper, goods, documents, insurance certificates, and related data processing software. It also explicitly includes all cash deposited with Aerus LLC or any of its affiliates.

For a prospective Aerus franchisee, this means that any cash deposits made with Aerus LLC could be considered collateral in the event of a debt or default. This is a significant consideration, as it could impact the franchisee's financial obligations and potential liabilities to Aerus.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.