Does the collateral for Aunt Millies Bakeries include additions to the distributor's equipment?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the collateral includes any additions to the distributor's equipment. Specifically, the security interest granted to the Secured Party covers various forms of the borrower's property. This includes all equipment related to or arising from the borrower's business, whether existing now or acquired in the future, and wherever it is located. The collateral also encompasses any and all accessions, replacements, and additions to the previously mentioned items.

For a prospective Aunt Millies Bakeries distributor, this means that any new equipment added to the business after the financing security agreement is signed automatically becomes part of the collateral. This could include items such as new hand carts or price guns purchased from Aunt Millies Bakeries, as indicated in Schedule C, under 'Misc. Equipment: At Current Cost'.

The inclusion of additions to equipment as collateral is a standard practice in secured lending. It ensures that the lender has a comprehensive claim on the assets of the business, protecting their investment in case of default. The franchisee should be aware that any equipment purchased to enhance or expand their Aunt Millies Bakeries distribution business will be subject to this security interest.