What rights does an Aunt Millies Bakeries franchisee waive upon default of the financing note?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, if a franchisee defaults on either the First Capital Acceptance Corp. (FCAC) or Distribution Services of America, Inc. (DSA) financing note, they waive specific legal rights. These rights include the right to presentment, demand for payment, protest, notice of dishonor, notice of protest, and notice of default of the note. This waiver is outlined in the promissory notes associated with both financing options.

In practical terms, this means that if an Aunt Millies Bakeries franchisee defaults, the lender (either First Capital or DSA) is not obligated to formally present the note for payment, demand payment, or provide formal notices typically required in debt collection. The franchisee essentially gives up their right to these legal protections, which could expedite the lender's ability to take action to recover the debt.

It is important for a prospective Aunt Millies Bakeries franchisee to fully understand the implications of waiving these rights. Defaulting on a loan can have severe financial consequences, and waiving these rights could make it easier for the lender to pursue legal action. Franchisees should consult with a legal and financial advisor to fully understand the risks associated with these financing terms before entering into any agreements.