Under the Browns Chicken Security Agreement, who is the Secured Party?
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. |
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the Secured Party in the Security Agreement is Brown's Chicken, LLC, an Illinois corporation located at 55 E. Park Boulevard, Villa Park, Illinois 60181. This is explicitly stated in the agreement, which outlines the terms between Browns Chicken as the Secured Party and the franchisee as the Debtor.
This designation means that Browns Chicken, LLC, is the entity to whom the franchisee grants a security interest in certain collateral as described in the agreement. This collateral typically includes equipment, furniture, fixtures, inventory, personal property, and other assets related to the Browns Chicken & Pasta store. The security interest serves as a form of protection for Browns Chicken, ensuring that the franchisee fulfills their monetary and non-monetary obligations under the Franchise Agreement.
In practical terms, if a Browns Chicken franchisee fails to meet their obligations to Browns Chicken, LLC, the Security Agreement allows Browns Chicken to claim the specified collateral. This could involve taking possession of the store's assets to cover outstanding debts or other breaches of the Franchise Agreement. Therefore, it is crucial for prospective franchisees to understand the full scope of the Security Agreement and the implications of granting a security interest to Browns Chicken, LLC.