Where will the collateral be located according to the Browns Chicken Security Agreement for Browns Chicken?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Security Agreement dated is by and between | |
|---|---|
| Brown's Chicken, LLC, an Illinois corporation, of 55 E. Park Boulevard, Villa Park, Illinois 60181 | |
| ("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. | |
| B. | |
| Debtor operates business as "Brown's Chicken & Pasta" pursuant to the Franchise | |
| Agreement, | |
| at | |
| the | |
| following | |
| location: | |
| ("Premises"). | |
| C. | |
| Debtor is giving Secured Party a security interest in the collateral described in this | |
| Agreement. | |
| NOW THEREFORE, in consideration of the several and mutual covenants set forth herein, and | |
| for other good and valuable consideration, the receipt and sufficiency of which are hereby | |
| acknowledged, the parties hereto agree as follows: | |
| 1. | |
| The Recitals set forth above shall be incorporated into this part of the Agreement as though | |
| they were fully set forth herein. | |
| 2. | |
| Description of Collateral: the following property located at or relating to the Brown's | |
| Chicken & Pasta Store at the Premises identified in Paragraph B of the Recitals. | |
| all equipment, furniture, fixtures, inventory, personal property, supplies, general intangibles, | |
| accounts receivable, accounts, contract rights, chattel paper and instruments, now owned or | |
| hereafter acquired by the Debtor, and all additions and accessions to, and all proceeds and | |
| products of the foregoing ("Collateral"). |
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the collateral as part of the Security Agreement is located at or relating to the Browns Chicken & Pasta store at the premises identified in Paragraph B of the recitals. This collateral includes all equipment, furniture, fixtures, inventory, personal property, supplies, general intangibles, accounts receivable, accounts, contract rights, chattel paper and instruments, now owned or hereafter acquired by the Debtor, and all additions and accessions to, and all proceeds and products of the foregoing.
In simpler terms, the collateral consists of virtually all the tangible and intangible assets associated with the Browns Chicken franchise location. This means everything from the cooking equipment and furniture to the inventory, supplies, and even the rights to collect revenue from customers is subject to the security interest. The location of these items is specifically tied to the Browns Chicken & Pasta store's physical address, as defined earlier in the agreement.
For a prospective franchisee, this has significant implications. It means that Browns Chicken has a legal claim on all of these assets as security for the franchisee's obligations under the Franchise Agreement. If the franchisee defaults on their obligations to Browns Chicken, the franchisor can seize these assets to recover what is owed. This is a common practice in franchising, as it protects the franchisor's investment and ensures that franchisees are committed to fulfilling their contractual duties.