factual

How does Aunt Millies Bakeries account for expenditures for maintenance and repairs?

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

USE AGREEMENT** ("Agreement") is made effective on _________, 20____, by and between PERFECTION BAKERIES, INC., d/b/a AUNT MILLIE'S, INC., a corporation with its principal office at 350 Pearl Street, Fort Wayne, Indiana 46802 (herein referred to as "AUNT MILLIE'S") and [DISTRIBUTOR'S NAME], residing at [DISTRIBUTOR'S ADDRESS], (herein referred to as "DISTRIBUTOR"). AUNT MILLIE'S and DISTRIBUTOR agree as follows**:**

    1. COMPUTER EQUIPMENT: AUNT MILLIE'S, directly, or through its affiliates, agrees to provide to DISTRIBUTOR a Handheld computer and printer ("the Computer Equipment"). The Computer Equipment may be exchanged or replaced by AUNT MILLIE'S or its affiliates from time to time with similar or comparable equipment.
    1. FEE: DISTRIBUTOR shall pay to AUNT MILLIE'S or its affiliates, the sum of $30.00, plus sales and use tax, per week for the use of the Computer Equipment. Such payment shall be charged to DISTRIBUTOR on a weekly basis. This fee is subject to change by AUNT MILLIE'S upon thirty (30) days' notice.
    1. USE: DISTRIBUTOR shall use the Computer Equipment exclusively in the operation and service of its distribution of AUNT MILLIE's products.
    1. MAINTENANCE: AUNT MILLIE'S or its affiliates shall bear the expense of maintaining the Computer Equipment in good operating condition.
    1. LIABILITY AND INSURANCE: DISTRIBUTOR, at its own expense, shall carry "all risk" insurance on the Computer Equipment in the minimum amount of $5,000 and AUNT MILLIE'S (and any of its affiliates that may be requested in writing by AUNT MILLIE'S) shall be included and named as an additional insured and/or loss payee. DISTRIBUTOR shall provide AUNT MILLIE'S a copy of such insurance certificate w

Source: Item 23 — RECEIPT (FDD pages 44–196)

What This Means (2025 FDD)

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the franchisor bears the expense of maintaining the computer equipment provided to the distributor. Aunt Millies Bakeries, directly or through its affiliates, provides a handheld computer and printer to the distributor, which may be exchanged or replaced with similar equipment from time to time.

For the use of this computer equipment, the distributor pays Aunt Millies Bakeries or its affiliates $30.00 per week, plus sales and use tax. This fee is subject to change with thirty days' notice. The distributor is required to use the computer equipment exclusively for the distribution of Aunt Millies Bakeries products.

The distributor is also obligated to carry "all risk" insurance on the computer equipment with a minimum coverage of $5,000, naming Aunt Millies Bakeries as an additional insured and/or loss payee. A copy of the insurance certificate must be provided to Aunt Millies Bakeries within thirty days of the agreement's effective date. Upon termination of the agreement, the distributor is responsible for returning the computer equipment to Aunt Millies Bakeries in good condition, with reasonable wear and tear excepted.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.