In the Buona Security Agreement, who is identified as the Secured Party?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Miscellaneous.
- 6.1. This Security Agreement shall inure to the benefit of, and shall be binding upon the respective successors, assigns, and legal representatives of the parties hereto.
- 6.2. The captions used herein are inserted for reference purposes only and shall not affect the interpretation or meaning of this Security Agreement.
- 6.3. Debtor hereby authorizes Secured Party, from time to time, to file financing statements in such form as may be necessary to perfect the security interest in the Collateral in any or all pertinent jurisdictions and in this regard, to execute said financing statements for itself (as secured party) and for Debtor (as debtor), as Debtor's agent. Upon Secured Party's request, Debtor shall execute any such financing statement as debtor.
SECURED PARTY: CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISIGN LLC DEBTOR: Dated: Dated:
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Secured Party in the Security Agreement is CHICAGO'S ORIGINAL ITALIAN BEEF FRANCHISIGN LLC. This entity, as the franchisor, enters into the agreement with the franchisee (Debtor) to secure the franchisee's obligations under the Franchise Agreement.
This Security Agreement ensures that Buona, as the franchisor, has a security interest in the Franchise Agreement itself, along with all signs, appurtenances, and property bearing Buona's proprietary marks at the franchised business. It also extends to all equipment, fixtures, furnishings, and improvements at the Buona Restaurant, regardless of when the franchisee acquired them. This collateral serves to secure the franchisee's payment and performance of all obligations and liabilities under the Franchise Agreement.
Furthermore, the Security Agreement authorizes Buona to file financing statements to perfect its security interest in the collateral. This includes the ability to execute these statements on behalf of both the secured party (Buona) and the debtor (franchisee). This measure protects Buona's interests by establishing a legal claim on the specified assets in case of default by the franchisee.