Does Aunt Millies Bakeries provide any guidance on how to describe the collateral on the UCC-1 form?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Exhibit A - State Regulators; Agents for Service | |
|---|---|
| of Process | |
| Exhibit B-Financing Documents from First Capital | |
| Acceptance Corp. | |
| (1)(a) | Promissory Note |
| (b) | Disbursement Authorization |
| (2) | Financing Security Agreement |
| (3) | UCC-1 (Representative Sample) |
- 1. GRANT OF SECURITY INTEREST: To secure the full and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of each of the Obligations (as hereafter defined), the Borrower hereby grants, conveys, assigns and transfers to Secured Party a security interest in and to the following personal property:
- a) any and all rights that the Borrower may have under the Distributor's Agreement between PERFECTION 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, whether now or hereafter existing or acquired and wherever located;
- c) any and all accessions, replacements and additions to or of the foregoing; and
- d) all cash or non-cash proceeds (including insurance proceeds) of the foregoing, the items described in a), b), c), and d) above being hereinafter collectively referred to as the "collateral".
Exhibit H – (1) Aunt Millie's Bakeries Security Agreement; and (2) UCC-1 (Representative Sample)
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, Exhibit H and Exhibit B reference a UCC-1 form. Specifically, Exhibit B refers to financing documents from First Capital Acceptance Corp. and lists a UCC-1 (Representative Sample). Exhibit H also lists a UCC-1 (Representative Sample) associated with DSA Financing Documents.
Furthermore, the Financing Security Agreement outlines the collateral for the loan. It states that the borrower grants a security interest to the secured party in: any rights under the Distributor's Agreement with Perfection Bakeries, Inc., d/b/a Aunt Millie's; all equipment, inventory, accounts, goods, property, contract rights, chattel paper, and general intangibles related to the borrower's business; any accessions, replacements, and additions to the foregoing; and all cash or non-cash proceeds of the foregoing. These items are collectively referred to as the "collateral".
While the FDD includes a sample UCC-1 form as an exhibit, it does not provide explicit instructions or guidance on how to describe the collateral on the UCC-1 form. However, the Financing Security Agreement offers a detailed description of what constitutes the collateral, which franchisees can use as a reference. Prospective franchisees should consult with a legal and financial professional to ensure accurate completion of the UCC-1 form and to understand the implications of granting a security interest in their assets.