What assets are covered by the UCC-1 form in Exhibit (H)(2) for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
This FINANCING STATEMENT covers the following collateral: The Distribution Rights granted to Debtor pursuant to that certain Bill of Sale and that certain Distribution Agreement, , by and between Debtor and Perfection Bakeries, Inc., (as hereafter amended, modified each dated as of , 20 or supplemented, the "Distribution Agreements"), together with other assets used by the Debtor in the operation of his/her business; a) all equipment, inventory, accounts, receivables, good, property, contract rights, chattel paper and general intangibles related to or arising from Borrower's business, whether now or hereafter existing or acquired and wherever located; b) any and all accessions, replacements and additions to or of the foregoing; and c) all cash or non-cash proceeds (including insurance proceeds) of the foregoing.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, Exhibit H includes a representative sample of the UCC-1 form. The collateral covered by the UCC-1 form includes the distribution rights granted to the debtor, outlined in the Bill of Sale and Distribution Agreement between the debtor and Perfection Bakeries, Inc. It also encompasses other assets used by the debtor in their business operations.
Specifically, the UCC-1 form covers all equipment, inventory, accounts, receivables, goods, property, contract rights, chattel paper, and general intangibles related to or arising from the borrower's business, regardless of whether these assets currently exist or are acquired in the future, and irrespective of their location. This broad definition ensures that a wide range of business assets are included as collateral.
Additionally, the UCC-1 form extends to any accessions, replacements, and additions to the aforementioned assets, as well as all cash or non-cash proceeds, including insurance proceeds, derived from these assets. This comprehensive coverage protects the lender's interests by securing their investment with virtually all aspects of the distributor's business assets and any financial gains resulting from them.