Under what conditions can an Aunt Millies Bakeries borrower execute general liens?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, a borrower can execute general liens and grant security interests under specific conditions. The borrower is permitted to do so in favor of Perfection Bakeries, Inc., Distribution Services of America, Inc., and B&G Leasing, Inc. This allowance is specifically for obligations other than those created under the current agreement.

This means that while an Aunt Millies Bakeries franchisee is generally restricted from creating liens against their property, there are exceptions for dealings with affiliated companies. These affiliated companies are Perfection Bakeries, Inc., Distribution Services of America, Inc., and B&G Leasing, Inc. However, these liens must be for obligations outside the scope of the current financing security agreement.

It is important for a prospective Aunt Millies Bakeries franchisee to understand the implications of these exceptions. While they can execute general liens with the specified companies, doing so for other obligations is not allowed. Additionally, any liens created must be subordinate to the lien created by the current agreement. This clause protects the lender's interest in the collateral. A franchisee should seek legal counsel to fully understand the risks and obligations associated with these types of liens and security interests.