How does Aunt Millies Bakeries account for advertising costs?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| HIS ADVERTISING AGREEMENT | C (this " | Agreen | nent") is |
|---|---|---|---|
| made effective, 20 | , by | and | between |
| PERFECTION BAKERIES, INC., d/b | /a AUN] | MIL | LIE'S an |
| Indiana business corporation with its prin | ncipal of | ice at 3 | 350 Pearl |
| Street, Fort Wayne, Indiana 46802 (herein referred to as "A | AUNT M | ILLIE | 'S") and |
| [DISTRIBUTOR'S CORPORATE NAME], a | busii | ess co | rporation |
| with its principal office at [DISTRIBUTOR'S ADDRES | S], (here | n refei | rred to as |
| LESSOR"). |
In consideration of the mutual promises contained herein the parties agree as follows:
- DELIVERY VEHICLE ADVERTISING AGREEMENT: LESSOR agrees to rent to AUNT MILLIE'S for the limited purposes of advertising AUNT MILLIE'S Products, the outside painted surfaces of the primary delivery vehicle utilized by LESSOR in the operation of its business. AUNT MILLIE'S agrees, in consideration of this rental, to provide and pay for the cost of applying advertising decals or materials to said vehicle, and to further pay as and for a space rental fee, the sum of $60/week. In consideration of such rental payments, LESSOR agrees to maintain said vehicle in a clean and neat condition, consistent with the best possible image for AUNT MILLIE'S in the marketplace, to repaint the vehicle from time to time as AUNT MILLIE'S may reasonably require, and to make the vehicle available to AUNT MILLIE'S on reasonable notice and at reasonable times, for the purpose of enabling AUNT MILLIE'S to place or
amend its advertising materials on the vehicle. AUNT MILLIE'S shall be solely responsible for the content of any advertising material and shall bear all expenses incurred in connection with placing, amending and/or removing of such advertising materials in the advertising space. In the event AUNT MILLIE'S, in its sole judgment, determines that LESSOR is not complying with the requirements of this Article AUNT MILLIE's may withhold rental payments, and if LESSOR fails to take reasonable steps to comply after notice from AUNT MILLIE'S, AUNT MILLIE'S shall be entitled to terminate this Vehicle Advertising Agreement on ten (10) days notice to LESSOR, and LESSOR shall immediately make the vehicle available to AUNT MILLIE'S for the purpose of having the advertising materials removed.
2. CLOTHING ADVERTISING AGREEMENT: LESSOR agrees to rent to AUNT MILLIE'S for the limited purposes of advertising AUNT MILLIE'S Products, all items of approved clothing worn by LESSOR's personnel in connection with the operation of its business appropriate for such use. AUNT MILLIE'S agrees to pay for such space rental the sum of $60/week. In consideration of such rental payments, LESSOR agrees to maintain all such items of clothing in a clean and neat condition, to maintain standards of dress and personal grooming consistent with AUNT MILLIE'S clothing advertising policy, as the same may be amended from time to time, and consistent with the best possible image for AUNT MILLIE'S in the marketplace, and to make such items of clothing available to AUNT MILLIE'S on reasonable notice and at reasonable times for the purpose of enabling AUNT MILLIE'S to place or amend its advertising materials on the clothing. AUNT MILLIE'S shall be solely responsible for the content of any advertising material and shall bear all expenses incurred in connection with placing, amending and/or removing of such advertising materials in the advertising space.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, advertising costs are addressed in agreements related to delivery vehicles and clothing. Aunt Millies Bakeries may rent advertising space on a distributor's delivery vehicle and on clothing worn by the distributor's personnel. In both scenarios, the distributor (referred to as the 'LESSOR' in these agreements) rents the advertising space to Aunt Millies Bakeries.
Aunt Millies Bakeries is responsible for providing and paying for the application of advertising materials, such as decals, to the vehicle. Additionally, Aunt Millies Bakeries pays a space rental fee of $60 per week for both vehicle and clothing advertising. In return, the distributor is responsible for maintaining the vehicle and clothing in a clean and neat condition, consistent with Aunt Millies Bakeries' image. The distributor must also repaint the vehicle as reasonably required by Aunt Millies Bakeries and make the vehicle and clothing available for advertising placement or amendments.
Aunt Millies Bakeries retains control over the content of the advertising material and bears all expenses related to placing, amending, or removing the advertising materials. If Aunt Millies Bakeries determines that the distributor is not complying with the agreement requirements, it may withhold rental payments. Furthermore, Aunt Millies Bakeries can terminate the advertising agreement with ten days' notice if the distributor fails to take reasonable steps to comply after being notified of non-compliance, requiring the distributor to make the vehicle or clothing available for advertising material removal.