Does the security interest granted to Crave extend to property acquired after the franchise agreement is signed?

According to Crave's 2025 Franchise Disclosure Document, the security interest granted to Crave extends to property acquired after the franchise agreement is signed. Crave franchisees grant Crave a Security Interest in all furniture, fixtures, equipment, signage, and realty of the Franchised Business, including interests in real and personal property leases. This Security Interest extends to similar property now owned or hereafter acquired, including additions, substitutions, replacements, proceeds, and products, wherever located, used in connection with the Franchised Business. All such items are considered "Collateral."

This means that Crave has a legal claim on not only the initial assets of the franchise but also any new assets acquired during the term of the franchise agreement. This could include new equipment purchased to upgrade the business or proceeds from the sale of existing equipment. The Security Interest ensures that Crave has recourse to these assets in case the franchisee defaults on their obligations.

The security interest covers all amounts due under the Franchise Agreement, sums Crave may expend to protect the Collateral (including rent, taxes, insurance), expenses Crave incurs collecting any Indebtedness, and all present or future liabilities of the franchisee to Crave. However, Crave's security interest is subordinated to any financing related to the franchisee's operation of the Franchised Business, such as a real property mortgage and equipment leases.