What security agreements outline the insurance requirements for Aunt Millies Bakeries?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the insurance requirements are outlined in several security agreements. Specifically, the First Capital Security Agreement §3.f (Exhibit B), Aunt Millie’s Bakeries Security Agreement §2(d) (Exhibit H-1), and the DSA Security Agreement §3(e) [Exhibit J(2)] all contain information regarding insurance obligations. Item 7 of the FDD also references these agreements in relation to insurance.

These security agreements are important for prospective franchisees as they detail the specific types and amounts of insurance coverage required to operate an Aunt Millies Bakeries distributorship. Understanding these requirements is crucial for budgeting and ensuring compliance with the franchise agreement. The FDD also mentions 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.

Furthermore, the FDD indicates that the estimated quarterly premium for insurance is reflected in the table within Item 7. While the actual insurance costs may vary, this provides a baseline for franchisees to estimate their expenses. The document also notes that if insurance is purchased through an approved vendor, the cost can be paid weekly, potentially reducing the upfront financial burden. Therefore, reviewing these security agreements and understanding the insurance requirements is a key step in evaluating the financial feasibility of an Aunt Millies Bakeries franchise.