According to the security agreement, where will the Collateral be kept for Jersey Mikes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
The Debtor will keep the Collateral free at all times from any and all liens, security interests, levies, and encumbrances other than Permitted Liens.
The Debtor will not, without the prior written consent of the Secured Party, sell or lease, or permit or suffer to be sold or leased, all or any part of the Collateral.
The Secured Party or its agents or attorneys may at any and all reasonable times inspect the Collateral and may enter upon any and all premises where the same is kept or might be located.
The Debtor shall allow the Secured Party to examine, inspect, and make abstracts from, or c opy any of the Debtor's books and records (relating to the Collateral or otherwise).
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the Debtor, which would be the franchisee, is responsible for the safekeeping of the collateral. The secured party, Jersey Mike's, or its agents, has the right to inspect the collateral at any reasonable time and may enter any premises where the collateral is kept or might be located.
Jersey Mike's requires the franchisee to maintain adequate records of the collateral. The franchisee must mark records and the collateral to clearly indicate Jersey Mike's security interest. Upon request, the franchisee must deliver all accounting and other records pertaining to the collateral to Jersey Mike's.
The franchisee is obligated to keep the collateral free from any liens, security interests, levies, and encumbrances, unless otherwise permitted. The franchisee cannot sell or lease any part of the collateral without prior written consent from Jersey Mike's. This ensures that the assets used as security remain protected and available to Jersey Mike's in case of default.