Are there any exceptions to the lien restrictions for an Aunt Millies Bakeries borrower?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, there are specific exceptions to the lien restrictions for borrowers. While the creation of any lien or the issuance of an attachment against the borrower's property generally constitutes a default, an exception exists.

Specifically, the borrower may execute general liens and grant security interests to and in favor of Perfection Bakeries, Inc., Distribution Services of America, Inc., and B&G Leasing, Inc. for obligations other than those created under the Financing Security Agreement. This means that an Aunt Millies Bakeries franchisee can have liens or security interests with these specific entities without being considered in default of their agreement with Aunt Millie's Bakeries.

This exception provides some flexibility for franchisees in managing their financial obligations, as they are not completely restricted from having liens with related or affiliated companies. However, it is crucial for prospective franchisees to understand the specific conditions and limitations of this exception to ensure they remain in compliance with the terms of their agreements. It is also important to note that this exception does not extend to other entities beyond those explicitly named.