Under the Aerus security agreement, is the Debtor required to execute supplemental agreements to confirm the Secured Party's security interest?

According to Aerus's 2025 Franchise Disclosure Document, as part of the security agreement, the Debtor (franchisee) is required to execute additional or supplemental agreements if requested by the Secured Party (Aerus). This confirms Aerus's security interest in the collateral. This obligation ensures that Aerus can take necessary steps to protect its financial interests in the assets used as collateral for any financing provided to the franchisee.

This requirement means that franchisees must be prepared to sign further documents beyond the initial security agreement to reinforce Aerus's lien on the collateral. These supplemental agreements serve to solidify Aerus's legal claim to the assets, which could include inventory, equipment, and other business property. The franchisee is also responsible for covering the costs associated with filing or recording the security agreement and any related financing statements, as well as the expenses for any record searches deemed necessary by Aerus to protect its security interest.

For a prospective Aerus franchisee, this implies a need to maintain open communication with Aerus and promptly address any requests for additional documentation. Failing to comply with these requests could potentially lead to a breach of the security agreement and subsequent legal or financial repercussions. Franchisees should factor in potential legal costs associated with these supplemental agreements and ensure they understand the full scope of the collateral involved in the security interest.

Overall, this clause is a standard practice in franchising to protect the franchisor's investment and security interest in the franchisee's business assets. Franchisees should seek legal counsel to fully understand their obligations under the security agreement and any supplemental agreements that may arise during the franchise term.