Does the description of Aerus' inventory collateral include proceeds of the inventory?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
SCHEDULE OF COLLATERAL
All present and future right, title and interest of Consignee in and to all the inventory now owned or hereafter acquired. Such inventory includes, without limitation, all attachments, renewals, replacements, additions, accessories, increases, parts, substitutes therefore and proceeds of the above and all guaranties, claims, rights, remedies and privileges relating to any of the foregoing.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus' 2025 Franchise Disclosure Document, the inventory collateral does include proceeds of the inventory. Specifically, the schedule of collateral includes all present and future rights, titles, and interests in the inventory, encompassing attachments, renewals, replacements, and proceeds.
This means that Aerus retains a security interest not only in the physical inventory itself but also in any revenue or assets generated from the sale of that inventory. This arrangement protects Aerus's financial stake in the consigned products provided to the franchisee.
For a prospective Aerus franchisee, this implies that Aerus has a secured interest in the inventory and its proceeds, which could affect the franchisee's ability to use those proceeds freely. The franchisee should be aware that these proceeds are subject to Aerus's security interest until all obligations are fulfilled.