Under the Aerus Security Agreement, who is designated as the 'Debtor'?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS SECURITY AGREEMENT (this "Agreement"), is entered into as of the date of execution by "Secured Party" (the "Effective Date") by and between AERUS FRANCHISING, LLC, a Delaware limited liability company, having offices at 14841 Dallas Parkway, Suite 500, Dallas, Texas 75254 ("Aerus Franchising" or "Secured Party") and the individual or entity executing this Agreement as Purchaser ("Debtor").
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the 'Debtor' in the Security Agreement is defined as the individual or entity executing the agreement as the Purchaser. Aerus Franchising, LLC is identified as the 'Secured Party' in this agreement.
This means that the franchisee, upon signing the Security Agreement, is legally considered the Debtor, incurring obligations to Aerus Franchising, LLC, the Secured Party. The Security Agreement is linked to a Franchise Agreement and a Secured Promissory Note, indicating that the franchisee's obligations, such as payments, are secured by this agreement.
Prospective franchisees should carefully review the Security Agreement to fully understand their obligations and the assets that may be at risk. It is also important to note the conditions under which Aerus can enforce the security agreement, potentially impacting the franchisee's business and personal assets.