Does the security interest granted to Aunt Millies Bakeries cover after-acquired property?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the security interest granted to Perfection Bakeries, Inc., d/b/a Aunt Millie's, does extend to after-acquired property. The security agreement specifies that the Borrower grants a security interest in various types of personal property related to the Borrower's business, including equipment, inventory, accounts, goods, property, contract rights, chattel paper, and general intangibles.

This security interest applies whether these assets are currently existing or acquired in the future, and regardless of their location. This means that any new equipment, inventory, or other assets the Borrower obtains after the security agreement is established will also be subject to Aunt Millies Bakeries's security interest.

This provision protects Aunt Millies Bakeries by ensuring that its security interest remains comprehensive over time, covering not only the initial assets of the business but also any subsequent additions or replacements. For a prospective franchisee, this means that any assets acquired during the term of the agreement could be subject to the security interest, which could impact the franchisee's ability to use those assets as collateral for other financing or sell them freely.