Does the Browns Chicken Security Agreement specifically identify the location of the collateral?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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"). 4. The Collateral will be located at the Premises. Debtor will not, without Secured Party's consent, remove the Collateral from the Premises. 6. Debtor hereby authorizes Secured Party to file Uniform Commercial Code ("UCC") Financing Statements to enable Secured Party to perfect this security interest by filing pursuant to the Uniform Commercial Code as adopted by the state where the Premises are located.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the Security Agreement does specify the location of the collateral. The agreement states that the collateral, which includes equipment, furniture, fixtures, inventory, and other property, is located at or related to the Browns Chicken & Pasta store at the premises identified in Paragraph B of the Recitals. Paragraph B identifies the specific location of the Browns Chicken & Pasta business.
This means that Browns Chicken franchisees are granting Browns Chicken, LLC a security interest in the business assets at their specific store location. Browns Chicken retains a secured interest in the franchisee's assets to ensure debts and obligations are fulfilled.
The agreement also states that the franchisee cannot remove the collateral from the premises without Browns Chicken's consent. This protects Browns Chicken's interest in the collateral by ensuring it remains at the approved location. The franchisee also authorizes Browns Chicken to file Uniform Commercial Code (UCC) Financing Statements to perfect the security interest in the state where the premises are located.