In the context of the contract with Big Apple Bagels, who is identified as the Secured Party?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Security Agreement dated is by and between | ||
|---|---|---|
| BAB Systems, Inc., an Illinois corporation, of 500 Lake Cook Road, Suite 475, Deerfield, Illinois | ||
| 60015 | ("Secured Party") and | |
| , whose principal place of business is ("Debtor"). RECITALS | ||
| A. | Debtor is a franchisee under a Franchise Agreement dated ("Franchise Agreement") with Secured Party as Franchisor, pursuant to which Franchise Agreement Debtor has ongoing monetary and non-monetary obligations to Secured Party. |
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, in the security agreement, BAB Systems, Inc., an Illinois corporation, is identified as the Secured Party. This agreement outlines the security interest granted by the franchisee (Debtor) to BAB Systems, Inc.
The security agreement is put in place to secure the debts, obligations, and liabilities the franchisee owes to Big Apple Bagels arising from the Franchise Agreement. The franchisee grants Big Apple Bagels a security interest in collateral, including equipment, furniture, fixtures, inventory, personal property, and accounts receivable, located at the Big Apple Bagels store.
This means that Big Apple Bagels has a legal claim on the franchisee's business assets to ensure the franchisee meets their financial obligations under the franchise agreement. If the franchisee defaults, Big Apple Bagels can seize these assets to recover what is owed. This is a common practice in franchising to protect the franchisor's investment and ensure compliance with the franchise agreement.