What is the definition of 'Accounts' for the purposes of Section 3.5 in the Aunt Millies Bakeries agreement?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, for the purposes of Section 3.5, "Accounts" are defined as accounts as defined in the Uniform Commercial Code (UCC) in effect in the state where the Distributor is organized.

This means that the term "Accounts," which is relevant to the purchase of receivables by Aunt Millies Bakeries from the distributor, is specifically defined by reference to the UCC. The UCC is a standardized set of laws governing commercial transactions in the United States. The specific definition of "accounts" can vary slightly depending on the state's adoption of the UCC, but generally, it refers to the right to payment for goods sold or services rendered.

For a prospective Aunt Millies Bakeries franchisee, this definition is important because it clarifies the scope of receivables that Aunt Millies Bakeries may purchase. It ensures that both the franchisee and Aunt Millies Bakeries have a common understanding of what constitutes an "account" within the context of their agreement, reducing potential disputes over which receivables are eligible for purchase. A franchisee should familiarize themselves with the UCC definition in their state to fully understand their rights and obligations related to the sale of accounts to Aunt Millies Bakeries.