Under what conditions does City Wide have the rights of a secured party under the UCC?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the occurrence of any event of default enumerated in Section 14.1 or 14.2 above, in addition to any other rights and remedies to which it may be entitled, CITY WIDE will have all rights and remedies of a secured party under the UCC as enacted in the State of Kansas, including but not limited to, the right to enter any premises of Franchisee to remove and repossess any products and goods in which CITY WIDE has been granted a security interest, without notice to Franchisee.
Franchisee waives and releases CITY WIDE from all claims in connection with or arising from such entering and removal.
At CITY WIDE's request following an event of default, Franchisee will assemble and make available to CITY WIDE all products and goods in which CITY WIDE has been granted a security interest, at a place to be designated by CITY WIDE which is convenient to both parties.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide will have the rights and remedies of a secured party under the Uniform Commercial Code (UCC) if an event of default occurs as outlined in Sections 14.1 or 14.2 of the franchise agreement. This grants City Wide certain legal rights to protect its interests. These rights are those of a secured party under the UCC as enacted in the State of Kansas.
Specifically, City Wide can enter the franchisee's premises to remove and repossess any products and goods in which City Wide has a security interest. This can be done without prior notice to the franchisee. The franchisee also waives any claims against City Wide related to City Wide entering the premises and removing items.
Following a default, City Wide can request the franchisee to assemble and make available all products and goods in which City Wide has been granted a security interest. This must be done at a location designated by City Wide that is convenient for both parties. This provision ensures City Wide can quickly recover its secured assets in case of a franchisee default, minimizing potential losses.