What does the UCC-1 form in Exhibit (H)(2) for Aunt Millies Bakeries secure?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Exhibit H includes a representative sample of a UCC-1 form. However, the document does not specify what the UCC-1 form secures.

Typically, a UCC-1 form (Uniform Commercial Code-1 financing statement) is a legal document filed by a lender to publicly declare its security interest in a borrower's assets. This gives the lender a legal claim to those assets if the borrower defaults on the loan. The UCC-1 form establishes the lender's priority over other creditors who may also seek to claim the same assets.

Since the FDD does not specify what the UCC-1 form secures for Aunt Millie's Bakeries, it is important for a prospective franchisee to ask the franchisor directly about the specifics of the security agreement and what assets are used as collateral. Understanding the obligations and potential risks associated with the UCC-1 filing is crucial before entering into a franchise agreement with Aunt Millies Bakeries.