What constitutes a default under other agreements between the Aunt Millies Bakeries borrower and the lender?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
wer. If a refund reduces principal, the reduction will be treated as a partial pre-payment.
6. EVENTS OF DEFAULT
This Note, and all other obligations of the Borrower to Note Holder, shall be and become immediately due and payable at the option of the Note Holder, without any demand or notice whatsoever, upon the occurrence of any of the following described events, each of which shall constitut
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, a default under any other agreements between the borrower and the lender constitutes an event of default. Specifically, if a borrower fails to meet the obligations outlined in any agreement they have with the lender, this will trigger the default clause.
This clause is significant for prospective Aunt Millies Bakeries franchisees because it broadens the scope of what can lead to a default. It's not limited to just the loan agreement itself but extends to any other financial commitments or agreements the franchisee has with the lender. This could include leases, lines of credit, or other financing arrangements.
For a potential franchisee, this means it's crucial to understand all the terms of any agreement with the lender and ensure compliance across the board. Failure to meet obligations in even a seemingly minor agreement could have serious repercussions, potentially leading to the acceleration of the loan and loss of the franchise. Franchisees should seek legal counsel to fully understand their obligations and the potential consequences of default.