What does the Browns Chicken Security Agreement secure?
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 the 2025 Browns Chicken Franchise Disclosure Document, the Security Agreement secures the franchisee's obligations to Browns Chicken. The franchisee, as the Debtor, grants Browns Chicken, as the Secured Party, a security interest in specific collateral. This collateral encompasses all property located at or related to the Browns Chicken & Pasta store at the specified premises.
The collateral includes a comprehensive list of assets, such as all equipment, furniture, fixtures, inventory, personal property, and supplies. It also extends to intangible assets like general intangibles, accounts receivable, accounts, contract rights, chattel paper, and instruments. The security interest covers assets currently owned by the franchisee and those acquired in the future.
Furthermore, the agreement encompasses any additions and accessions to the listed property, as well as all proceeds and products derived from the specified assets. This broad definition ensures that Browns Chicken has a secured interest in a wide range of the franchisee's business assets, providing financial protection to Browns Chicken in case the franchisee fails to meet their obligations under the Franchise Agreement.