Under what conditions does an Aunt Millies Bakeries franchisee have to pay Attorney's Fees?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, a franchisee may be required to pay attorney's fees under specific circumstances related to a default under the Security Agreement with an Aunt Millies Bakeries's affiliate. These attorney's fees are capped at 15% of the outstanding amount due to the affiliate at the time of the default.

Specifically, if a franchisee defaults on the Security Agreement with Aunt Millies Bakeries's affiliate, they will be responsible for covering Aunt Millies Bakeries's legal costs. These costs include expenses incurred for pursuing, searching for, receiving, taking, keeping, storing, advertising, and selling the collateral associated with the agreement. This means that if Aunt Millies Bakeries has to take legal action to recover assets or payments due to a franchisee's default, the franchisee will bear the burden of the resulting attorney's fees, up to the specified limit.

This condition is important for prospective franchisees to consider, as it highlights the potential financial risks associated with defaulting on the Security Agreement. Franchisees should ensure they fully understand the terms of the Security Agreement and their obligations to avoid incurring these additional costs. It is also worth noting that the attorney's fees are tied to actions related to the collateral, suggesting that the Security Agreement likely involves securing the franchisee's obligations with specific assets.