Is the UCC-1 form for Aunt Millies Bakeries specific to the franchisee's location?

Based on the 2025 FDD, the definition of "Accounts" in the Aunt Millies Bakeries Distribution Agreement refers to the Uniform Commercial Code (UCC) as it is in effect in the state of organization of the distributor. This implies that the specific requirements and interpretations of the UCC, including any UCC-1 filings, would be governed by the state where the distributor's business is organized.

For a prospective Aunt Millies Bakeries franchisee, this means that the process for filing and managing UCC-1 forms, which are used to create a security interest in the franchisee's assets, will vary depending on the state in which their business is legally established. The franchisee will need to comply with the specific UCC regulations of their state, which may include different filing procedures, fees, and requirements for maintaining the security interest.

This aspect is important because it highlights the need for franchisees to seek legal counsel familiar with the UCC laws in their specific state to ensure they properly understand and comply with all requirements related to secured transactions. Failing to adhere to these regulations could jeopardize their business assets or create legal complications with Aunt Millies Bakeries or its lenders. Therefore, understanding the local UCC rules is a critical part of setting up and operating an Aunt Millies Bakeries distributorship.