What is included in the definition of 'Collateral' under the Creative World School Security Agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
All furniture, fixtures, equipment, accessories, inventory, licenses, permits, goods, | materials, supplies, accounts, general intangibles, and all other assets, including, | without limitation, the Equipment and customer contracts, used in the operation of | the | franchised | business | known | as | "Creative | World | School" | located | at | ; | all | additions, | attachments, | accessories, | accessions, parts, fittings, and special tools now and hereafter affixed thereto | and/or used in connection therewith, and all replacements thereof, and all | substitutions and exchanges therefor; and all proceeds, including all cash | proceeds and all noncash proceeds, including without limitation, proceeds of any | and all insurance | covering any of the foregoing, and all products of any and all of | the foregoing.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the collateral in the security agreement encompasses a wide range of assets related to the operation of the franchised Creative World School business. This includes all furniture, fixtures, equipment, accessories, inventory, licenses, permits, goods, materials, supplies, accounts, and general intangibles. The collateral also specifically includes the opening package equipment, materials, and supplies.
Furthermore, the definition extends to all other assets, including customer contracts, used in the operation of the Creative World School franchise. It also covers any additions, attachments, accessories, accessions, parts, fittings, and special tools affixed to the listed items or used in connection with them. This also includes all replacements, substitutions, and exchanges for these items.
Finally, the collateral includes all proceeds from the listed assets, encompassing both cash and noncash proceeds, such as insurance payouts related to any of the foregoing items. It also includes all products derived from any of the listed assets. This comprehensive definition ensures that the secured party has a broad claim on the assets of the Creative World School franchise in the event of default.