Does Aira Fitness Franchising LLC, as the Secured Party, have the authority to file financing statements on behalf of the Debtor to perfect the security interest in the Collateral?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Debtor hereby authorizes Secured Party, from time to time, to file financing statements in such form as may be necessary to perfect the security interest in the Collateral in any or all pertinent jurisdictions and in this regard, to execute said financing statements for itself (as secured party) and for Debtor (as debtor), as Debtor's agent. Upon Secured Party's request, Debtor shall execute any such financing statement as debtor.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness Franchising LLC, as the Secured Party, is authorized to file financing statements to perfect the security interest in the Collateral. The Debtor authorizes the Secured Party to file these statements.
This authorization allows Aira Fitness Franchising LLC to protect its financial interest in the assets of the franchisee's business. By filing financing statements, Aira Fitness establishes a legal claim to the Collateral, which includes the Franchise Agreement, signs, personal property bearing Aira Fitness marks, fitness equipment, other equipment, fixtures, furniture, inventory, and supplies at the Aira Fitness Business.
Furthermore, Aira Fitness Franchising LLC is authorized to execute these financing statements not only for themselves but also as the agent for the Debtor. This means Aira Fitness can act on behalf of the franchisee to ensure the security interest is properly documented and perfected. The franchisee is also obligated to execute any such financing statement upon Aira Fitness's request.
This clause is a standard practice in franchising to protect the franchisor's investment and ensure compliance with legal requirements for securing their interest in the franchisee's business assets. It is important for the franchisee to understand the implications of granting this authority, as it allows Aira Fitness to take necessary legal steps to protect their financial stake in the franchise.