Can the Beverly Anns Cookie loan or a copy of it be filed as a financing statement?

According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the Loan and Security Agreement states that the loan agreement or a copy of it is sufficient as a financing statement and may be filed as such. This is related to the security interest the lender, Auxilior Capital Partners, takes in the equipment being financed.

This means that Auxilior Capital Partners, the lender, can protect its financial interest in the equipment by filing the loan agreement itself, or a copy, with the relevant authorities. This establishes a public record of the lender's lien on the equipment, ensuring that Beverly Anns Cookie cannot sell or transfer the equipment without the lender's consent. It also gives the lender priority over other creditors if Beverly Anns Cookie defaults on the loan.

Beverly Ann's Cookie is also required to register the equipment at the franchisee's address and title the equipment in their name, showing the lender as the secured party or lien holder. The franchisee also irrevocably authorizes the lender to file financing statements on their behalf. If requested by the lender, the franchisee agrees to sign financing statements so that the lender can publicly record their security interest.

This clause protects the lender and ensures they have a secured interest in the equipment being financed. It is a standard practice in secured lending to file a financing statement to perfect the lender's security interest, making it enforceable against third parties.