What is the definition of 'Property' as it relates to securing obligations of the loan for Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
To secure the payment and performance of the Secured Debts, I grant you a security interest in all of the Property described in this Agreement that I own or have sufficient rights in which to transfer an interest, now or in the future, wherever the Property is or will be located, and all proceeds and products from the Property (including, but not limited to, all parts, accessories, repairs, replacements, improvements, and accessions to the Property). Property is all the collateral given as security for the Secured Debts and described in this Agreement, and includes all obligations that support the payment or performance of the Property. "Proceeds" includes cash proceeds, non-cash proceeds and anything acquired upon the sale, lease, license, exchange, or other disposition of the Property; any rights and claims arising from the Property; and any collections and distributions on account of the Property.
Property also includes any original evidence of title or ownership whether evidenced by a certificate of title or ownership, a manufacturer's statement of origin or other document when the Property is titled under any federal or state law. I will deliver the title documents and properly execute all title documents as necessary to reflect your security interest.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, 'Property' is defined within the context of securing loan obligations. It encompasses all collateral provided as security for the 'Secured Debts,' as detailed in the agreement. This includes any obligations supporting the payment or performance related to the property.
Specifically, 'Property' includes any assets the borrower owns or has sufficient rights to transfer an interest in, whether these assets currently exist or are acquired in the future, and regardless of their location. This also extends to all proceeds and products derived from the property, including but not limited to parts, accessories, repairs, replacements, improvements, and accessions. The definition of 'Proceeds' is broad, covering cash proceeds, non-cash proceeds, and anything obtained from the sale, lease, license, exchange, or other disposition of the property. It also includes any rights and claims associated with the property, as well as any collections and distributions related to it.
Furthermore, 'Property' encompasses any original evidence of title or ownership, whether documented by a certificate of title, a manufacturer's statement of origin, or other relevant documents, particularly when the property is titled under federal or state law. The borrower is obligated to deliver these title documents and properly execute all necessary title documents to reflect the lender's security interest. This comprehensive definition ensures that the lender has a broad security interest in various types of assets to secure the loan, providing a safeguard against potential default by the borrower.