Does Beyond Juicery Eatery take a security interest to secure payment of fees?
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 the 2025 FDD, Beyond Juicery Eatery does take a security interest to secure payment of fees. The franchise agreement states that the franchisee grants Beyond Juicery Eatery a continuing security interest in the collateral listed in the agreement. This security interest serves to secure the payment of all fees and other amounts due to Beyond Juicery Eatery, as well as to ensure the franchisee's full performance under the franchise agreement.
In practical terms, this means that Beyond Juicery Eatery has a legal claim on specific assets of the franchisee's business. If the franchisee fails to pay the required fees or does not fulfill their obligations under the agreement, Beyond Juicery Eatery can seize these assets to recover the owed amounts or to compensate for the franchisee's non-compliance. The specific assets that constitute the collateral are detailed elsewhere in the franchise agreement.
This is a fairly standard practice in franchising, as it provides the franchisor with a degree of financial protection and recourse in case of franchisee default. Prospective franchisees should carefully review the franchise agreement to understand exactly which assets are subject to this security interest and what conditions would trigger Beyond Juicery Eatery's right to seize those assets.