factual

Does Aunt Millies Bakeries provide assistance to franchisees in completing the UCC-1 form?

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

For purposes of this Section 3.5, "Accounts" shall

mean accounts as defined in the Uniform Commercial Code as in effect in the state of organization of Distributor.

Source: Item 23 — RECEIPT (FDD pages 44–196)

What This Means (2025 FDD)

Based on the 2025 FDD, it is not explicitly stated whether Aunt Millies Bakeries provides assistance to franchisees in completing the UCC-1 form. However, the document does refer to the Uniform Commercial Code (UCC) in the context of defining "Accounts" related to the purchase of receivables. Specifically, Aunt Millie's purchases the distributor's rights to accounts arising from the sale of products to chains or outlets, defining "Accounts" as per the UCC in the distributor's state of organization. This indicates that the UCC is relevant to the financial relationship between Aunt Millies Bakeries and its distributors.

While the FDD mentions the UCC in relation to accounts and receivables, it does not detail whether Aunt Millies Bakeries offers direct assistance in filling out the UCC-1 form, which is used to create a security interest in those accounts. The agreement specifies that Aunt Millie's purchases the distributor's accounts receivable free and clear of all liens, security agreements, and encumbrances, other than those in favor of or permitted by Aunt Millie's and its principal lender. This suggests that franchisees may need to understand and comply with UCC regulations regarding secured transactions.

Therefore, a prospective Aunt Millies Bakeries franchisee should inquire with the franchisor about any support or guidance provided in understanding and complying with UCC requirements, particularly concerning the creation and maintenance of security interests related to accounts receivable. It would be prudent to clarify whether Aunt Millies Bakeries offers any resources or training to help franchisees navigate these legal and financial obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.