What is the maximum amount of Attorney's Fees an Aunt Millies Bakeries franchisee might have to pay?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Fees | 5% of the overdue monthly payment. | Upon demand | If you are in default of your payment to our Affiliates by more than 15 days |
| Attorney’s Fees | Not to exceed 15% of the then outstanding amount due to our Affiliate | Upon any default under the Security Agreement with our Affiliate, you must pay our attorneys’ fees for pursuing, searching for, receiving, taking, keeping, storing, advertising, and selling the collateral |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, franchisees may incur attorney's fees under specific circumstances related to defaults. Specifically, if a franchisee defaults under the Security Agreement with Aunt Millie's Bakeries's affiliate, they are responsible for covering Aunt Millie's Bakeries's attorney's fees. These fees cover a range of actions, including pursuing, searching for, receiving, taking, keeping, storing, advertising, and selling the collateral.
The maximum amount for these attorney's fees is capped at 15% of the outstanding amount due to Aunt Millie's Bakeries's affiliate at the time of the default. This means the actual dollar amount could vary significantly depending on the franchisee's debt at the time of default. For a prospective franchisee, this highlights the importance of maintaining good standing with the Security Agreement to avoid potentially substantial legal costs.
It's important to note that this fee is contingent on a default under the Security Agreement. The FDD does not specify what constitutes a default, so prospective franchisees should seek clarification from Aunt Millie's Bakeries regarding the specific conditions that could trigger this fee. Understanding these conditions is crucial for managing financial risks associated with the franchise.