What are the repercussions for an Aunt Millies Bakeries borrower who fails to maintain the required insurance?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The following shall constitute a default by the Borrower:
- a) Borrower's failure to pay to Secured Party when due any obligation secured by this Agreement;
- b) any termination of the Distributor's Agreement executed between Borrower and PERFECTION BAKERIES, INC., d/b/a AUNT MILLIE'S of even date herewith;
- c) Borrower's failure to comply with or perform any provisions or covenants of this Agreement or any other agreement between Borrower and Secured Party;
- d) Borrower's failure to maintain the insurance required in Article 3 above;
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, if a borrower fails to maintain the required insurance as outlined in Article 3 of the Financing Security Agreement, it constitutes a default by the borrower.
Specifically, the agreement states that the failure to maintain required insurance is a breach of the agreement. This can trigger certain remedies available to the secured party.
While the document specifies that failure to maintain insurance is a default, the specific remedies available to the secured party upon such a default are not detailed in the provided excerpts. A prospective franchisee should review the full agreement and consult with Aunt Millies Bakeries to fully understand the repercussions of failing to maintain the required insurance.