What security agreements outline the insurance obligations for an Aunt Millies Bakeries franchisee?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Distribution Agreement or Other Agreement | Item in Franchise Disclosure Document | |
|---|---|---|---|
| n. | Insurance | First Capital Security Agreement §3.f (Exhibit B); Aunt Millie’s Bakeries Security Agreement §2(d) (Exhibit H-1) DSA Security Agreement §3(e) [Exhibit J(2)] | Item 7 |
- 9 You must purchase the comprehensive general liability insurance, automobile liability insurance, and product liability insurance coverages set forth in the Aunt Millie's Bakeries Security Agreement attached as Exhibit H to this Franchise Disclosure Document.
The figure shown in the table reflects the estimated quarterly premium for insurance.
If purchased through an approved vendor, this cost can, at your option, be paid weekly and thereby would represent no upfront cost.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 19–20)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the security agreements that outline the insurance obligations for a franchisee are detailed in several documents. Specifically, the First Capital Security Agreement §3.f (Exhibit B), the Aunt Millie’s Bakeries Security Agreement §2(d) (Exhibit H-1), and the DSA Security Agreement §3(e) [Exhibit J(2)] all address insurance requirements. Item 7 of the FDD also references these security agreements.
These agreements likely specify the types and amounts of insurance coverage the franchisee must maintain. Item 7 notes that franchisees must purchase comprehensive general liability insurance, automobile liability insurance, and product liability insurance coverages as set forth in the Aunt Millie's Bakeries Security Agreement attached as Exhibit H. The estimated quarterly premium for this insurance is provided, and if purchased through an approved vendor, it can be paid weekly, representing no upfront cost.
Prospective franchisees should carefully review these security agreements and insurance requirements with a business or financial advisor to understand the full scope of their obligations and potential costs. Understanding these requirements is crucial for budgeting and ensuring compliance with Aunt Millies Bakeries' standards.