Under the Aerus security agreement, who do the terms designating the parties include?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
SECURITY AGREEMENT
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").
WITNESSETH:
WHEREAS, Debtor has entered into a certain Franchise Agreement (the "Franchise Agreement") with Secured Party;
WHEREAS, Debtor has executed and delivered to Secured Party a certain Secured Promissory Note of even date herewith (including any replacement, renewal, revision or refinancing thereof, the "Note") to evidence the indebtedness of Debtor to Secured Party; and WHEREAS, as an inducement to Secured Party to extend credit as evidenced by the Note, Debtor desires to secure the Note in the manner hereinafter set forth;
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the security agreement designates the parties as Aerus Franchising, LLC, as the Secured Party, and the individual or entity executing the agreement as the Purchaser, who is referred to as the Debtor. Aerus Franchising has offices at 14841 Dallas Parkway, Suite 500, Dallas, Texas 75254.
This agreement is connected to a Franchise Agreement between the Debtor and Secured Party. It also relates to a Secured Promissory Note, which the Debtor delivers to Aerus Franchising to show the Debtor's indebtedness to the Secured Party. The security agreement serves to secure the note, ensuring that Aerus Franchising has a claim on specific assets if the Debtor fails to meet their financial obligations.
For a prospective Aerus franchisee, understanding this security agreement is crucial. It outlines the conditions under which Aerus Franchising can claim the franchisee's assets (collateral) if the franchisee defaults on their financial obligations, such as loan repayments. The agreement also defines key terms like "Collateral" and "Debt," which clarify what assets are at risk and what financial obligations are covered by the security agreement. Franchisees should carefully review these definitions and understand their implications before signing the agreement.