Does the Deck Medic Security Agreement represent the entire agreement between the parties?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 17. GOVERNING LAW. This note shall be governed under the laws in the State of Illinois.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the undersigned Borrower and Guarantors(s) have signed this Note as of the date first set forth above.
| WITNESS: | Borrower: | |----------------------------------------|-----------------| | Witness Signature | By: Name: Title: | | Print Witness Name and Home | | | Address | | | WITNESS: | Guarantor: | | | | | Witness Signature | By: Name | | Print Witness Name and Home | | | Address | |
Franchise Agreement Exhibit 7 Security Agreement
SECURITY AGREEMENT
This Security Agreement ("Security Agreement") is made as of [Date] between [Debtor Name] ("Debtor"), and Deck Medic, Inc. ("Secured Party").
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.
SECTION 1 -- DEBTOR'S OBLIGATIONS.
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 itself does not represent the entire agreement between the parties. The Security Agreement is made as of a specific date between the Debtor (franchisee) and Deck Medic, Inc. (Secured Party). It grants Deck Medic a security interest in the franchisee's assets, including inventory, accounts, supplies, contracts, and proceeds from the Franchise Agreement.
The collateral serves as security for the franchisee's obligations, including the payment of promissory notes, performance under the Franchise Agreements, and all other agreements between the franchisee and Deck Medic. This indicates that the Security Agreement is just one component of the overall contractual relationship.
Furthermore, the FDD states that the written Franchise Agreement represents the sole agreement between Deck Medic and the franchisee. This implies that while the Security Agreement is a part of their business arrangement, it is the Franchise Agreement itself that encompasses the entirety of the agreement between Deck Medic and the franchisee.