Does the Financing Security Agreement for Aunt Millies Bakeries specify the loan amount?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
FECTION BAKERIES, INC., d/b/a AUNT MILLIE'S** and Borrower;
- b) all equipment, inventory, accounts, goods, property, contract rights, chattel paper and general intangibles related to or arising from Borrower's business,
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the Financing Security Agreement does reference a loan amount. Specifically, it mentions a Promissory Note with an original principal amount denoted as "LOAN AMOUNT ($___.00) DOLLARS." This indicates that the agreement is intended to specify the loan amount, although the exact figure is left blank in the sample document.
This agreement serves to secure the franchisee's obligations to the secured party, covering the principal and interest on the Promissory Note, as well as all other debts and liabilities outlined in the Financing Security Agreement. The franchisee grants a security interest in various assets, including rights under the Distributor's Agreement, equipment, inventory, accounts, and proceeds from the business, to ensure fulfillment of these obligations.
Prospective Aunt Millies Bakeries franchisees should note that this agreement requires them to execute financing statements and adhere to the terms of the obligations. Failure to meet these obligations, such as not paying when due or violating any covenants, can result in default. It is crucial for franchisees to understand the specific loan amount and all associated terms before entering into this agreement.
Given that the loan amount is not specified in the provided excerpt, it is essential for a prospective franchisee to obtain a complete and filled-in version of the Financing Security Agreement from Aunt Millies Bakeries. This will allow them to fully understand the financial commitment and obligations they are undertaking.