Does the security interest granted to Beyond Juicery Eatery include after-acquired assets?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 24.09 You grant us a continuing security interest in the Collateral listed in this section to secure the payment of all fees and other amounts due to us and to secure your full performance under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, franchisees grant the company a security interest. Specifically, Item 23, Paragraph 24.09 states that the franchisee grants Beyond Juicery Eatery a continuing security interest in the collateral listed in that section. This security interest serves to ensure the payment of all fees and other amounts owed to Beyond Juicery Eatery, as well as to secure the franchisee's full performance under the Franchise Agreement.
The FDD excerpt does not specify whether this security interest extends to after-acquired assets, which are assets the franchisee obtains after the franchise agreement is signed. This is a crucial detail for prospective franchisees to understand, as it affects the scope of Beyond Juicery Eatery's claim on the franchisee's assets in case of default or non-compliance.
To fully understand the implications, a prospective Beyond Juicery Eatery franchisee should ask the franchisor for clarification on whether the security interest includes after-acquired assets. If it does, the franchisee should carefully evaluate the potential impact on their financial flexibility and ability to secure financing from other sources.