Can the Secured Party declare all indebtedness immediately due upon Anago's default?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon any such default, Secured Party, at its option, without demand upon or notice to Debtor, may declare all indebtednesses, obligations and liabilities secured hereby to be immediately due and payable, and Secured Party shall have all the rights and remedies provided a secured party under the Uniform Commercial Code and may proceed to foreclose the security interest created hereby according to law, and may, at its option, and it is hereby empowered, with or without foreclosure action, to enter upon the Premises or any other premises where the Collateral or any part thereof may be and take possession thereof and remove the Collateral or any part
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a Debtor defaults on their agreement, the Secured Party has the option to declare all debts, obligations, and liabilities immediately due and payable without prior notice or demand. The Secured Party also possesses all rights and remedies available to a secured party under the Uniform Commercial Code, allowing them to foreclose on the security interest according to the law.
Furthermore, the Secured Party is empowered to enter the premises where the collateral is located, with or without a foreclosure action, and take possession of the collateral. This includes the right to remove the collateral from the premises.
This clause provides significant protection to the Secured Party in the event of a default by the Debtor, allowing them to quickly recover outstanding debts and take control of the collateral. Prospective Anago franchisees should understand the conditions that constitute a default and the potential consequences, including the immediate acceleration of all debts and the loss of collateral.