Does the Stretch Zone security interest cover obligations that are unliquidated?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Obligations Secured.
The security interest secures the payment and performance of all indebtedness, obligations and liabilities of any kind of the Franchisee/Debtor to the Franchisor/Secured Party now or later existing, arising directly between the Franchisee/Debtor and the Franchisor/Secured Party including the Franchisee's/Debtors obligations under the Area Development Agreement and Franchise Agreement (collectively, the "Obligations").
Source: Item 2 — Obligations Secured. (FDD page 263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the security interest granted by the franchisee to Stretch Zone secures all types of obligations. This includes all indebtedness, obligations, and liabilities of any kind that the franchisee owes to Stretch Zone.
This security interest applies to obligations that currently exist or arise in the future. It covers obligations stemming directly from the relationship between the franchisee and Stretch Zone.
Specifically, the security interest encompasses the franchisee's obligations under both the Area Development Agreement and the Franchise Agreement. This means that Stretch Zone's security interest is very broad, securing a wide array of potential financial and performance-based duties a franchisee may have.