How can the Deck Medic Security Agreement be amended?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
For good and valuable consideration, the receipt and sufficiency of which are acknowledged, Debtor grants to Secured Party a security interest including inventory, accounts, supplies, contracts, and proceeds and products of all those assets and any and all amendments thereto to which Debtor and/or any Co-Debtors may be entitled pursuant to any Franchise Agreement entered into with Secured Party, together with all such rights and property hereafter acquired by Debtor and Co-Debtors; and all general intangibles (collectively, the "Collateral") as well as all parts, replacements, substitutions, profits, products and cash and non-cash proceeds of the foregoing Collateral (including insurance and condemnation proceeds payable by reason of condemnation of or loss or damage thereto). The Collateral described herein falls within the scope of the Uniform Commercial Code enacted in Illinois. The foregoing Collateral is granted to Secured Party as security for (i) the prompt payment of any promissory notes executed by Debtor in favor of Secured Party, and any renewals, compromises, extensions, modifications, accelerations or other changes in the time for performance or other terms (the "Notes"), and (ii) performance under any Franchise Agreements between Debtor and Secured Party, as the same may be amended (the "Franchise Agreements"), and (iii) all other agreements between Debtor and Secured Party.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the Security Agreement between the Debtor and Secured Party (Deck Medic, Inc.) can be amended. The Security Agreement is granted to the Secured Party as security for the prompt payment of any promissory notes executed by the Debtor, performance under any Franchise Agreements between the Debtor and Secured Party, as the same may be amended, and all other agreements between Debtor and Secured Party.
This means that the terms of the Security Agreement can be changed over time through formal amendments. These amendments could cover various aspects, such as the amount of debt secured, the collateral involved, or the payment terms. It is typical in franchising to have the flexibility to modify agreements as business needs evolve or as the relationship between the franchisor and franchisee changes.
For a prospective Deck Medic franchisee, this indicates that the initial terms of the Security Agreement are not necessarily set in stone. There is a mechanism in place to address changing circumstances or specific needs that may arise during the course of the franchise relationship. However, any amendments would likely require mutual agreement between Deck Medic and the franchisee.
It is important for a potential Deck Medic franchisee to understand the conditions under which the Security Agreement can be amended and to seek legal counsel when considering any changes to ensure their interests are protected.