What is the definition of 'Premises' according to the Browns Chicken Security Agreement?
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 term 'Premises' is defined within the context of the Security Agreement. Specifically, it refers to the location where the franchisee operates their Browns Chicken & Pasta business. This definition is crucial because the Security Agreement grants Browns Chicken, as the Secured Party, a security interest in the franchisee's collateral, which includes property located at or related to the Browns Chicken & Pasta store at the specified Premises.
This means that the physical location of the Browns Chicken franchise is central to the agreement, as it serves as the place where the collateral securing the franchisee's obligations is situated. The collateral includes all equipment, furniture, fixtures, inventory, personal property, supplies, general intangibles, accounts receivable, accounts, contract rights, chattel paper, and instruments owned or acquired by the franchisee, as well as any additions, accessions, proceeds, and products of these items. All of these items are located at the 'Premises'.
For a prospective Browns Chicken franchisee, understanding this definition is essential because it clarifies that the franchisor has a secured interest in the assets located at their store. If the franchisee fails to meet their monetary or non-monetary obligations under the Franchise Agreement, Browns Chicken can claim these assets as collateral. Therefore, franchisees should be fully aware of the implications of the Security Agreement and the extent of the collateral tied to the Premises.