What does Aunt Millies Bakeries agree to sell and deliver to the distributor?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
OF PRODUCTS**
- §3.1 TITLE: All Products will be sold to DISTRIBUTOR absolutely, and title to and risk of loss of, the Products shall pass to DISTRIBUTOR upon delivery in accordance with §3.2 below.
- §3.2 DELIVERY: Except as otherwise provided herein, AUNT MILLIE'S agrees to sell and deliver to DISTRIBUTOR, and DISTRIBUTOR agrees to buy and accept, at such location as AUNT MILLIE'S may from time to time reasonably designate or approve, sufficient quantities of the Products to adequately and properly supply the Outlets in the Sales Area. AUNT MILLIE'S agrees to use commercially reasonable efforts to fill DISTRIBUTOR'S orders in a reasonable and timely fashion. In case of strike, shortage of materials, breakdown or other cause, AUNT MILLIE'S reserves the right to fill orders on such reasonable basis as circumstances then permit. AUNT MILLIE'S and DISTRIBUTOR recognize that cuts and pluses and, on rare occasions, cancellations of deliveries, in whole or in part, are an unavoidable aspect of fresh baked goods production. In the event of pluses, DISTRIBUTOR agrees to use best efforts to effect the sale of the additional product.
AUNT MILLIE'S further agrees to repurchase at DISTRIBUTOR'S cost, and give full credit for, any damaged or off code Product which is not damaged or off code by reason of DISTRIBUTOR'S negligence, and which has been promptly returned to a reasonable location designated by AUNT MILLIE'S in accordance with AUNT MILLIE'S' then current stale and damage repurchase policy. AUNT MILLIE'S reserves the right to make reasonable amendments to such stale and damage repurchase policy from time to time.
- §3.3 TERMS: Products will be sold to DISTRIBUTOR on terms and prices established by AUNT MILLIE'S from time to time.
- §3.4 SETTLEMENT OF ACCOUNT: On or before Friday of each week, the parties agree to settle their accounts for all Products delivered to DISTRIBUTOR during the preceding week, acknowledging DISTRIBUTOR'S credit for any off code or damaged Products repurchased in accordance with §3.2 above, and receivables purchased pursuant to §3.5, below. The profit margins on the Products sold by DISTRIBUTOR will be established by AUNT MILLIE's and are subject to change at any time.. DISTRIBUTOR agrees that Non-Recurring Charges noted on Form IO13 attached to this Agreement as Schedule "C" will be assessed and deducted from the weekly settlement, whether or not DISTRIBUTOR signs said form. DISTRIBUTOR acknowledges and agrees that the charges on Schedule C" (Form IO13) are subject to change by AUNT MILLIE's at any time.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millies Bakeries agrees to sell and deliver to the distributor sufficient quantities of 'Products' to adequately and properly supply the Outlets in the Sales Area. Aunt Millies Bakeries will designate or approve the location for these deliveries. The company also commits to using commercially reasonable efforts to fulfill the distributor's orders in a timely manner. However, Aunt Millies Bakeries reserves the right to adjust order fulfillment based on circumstances such as strikes or shortages.
The term 'Products' includes all fresh baked breads, rolls, muffins, cakes, cookies, pies, bread stuffings, packaged croutons and similar fresh baked products intended to be sold as fresh. These products are sold under the names and trademarks KOEPPLINGER RECIPE SOFT 'N GOOD and AUNT MILLIE'S PERFECTION PASTRIES, along with other names and trademarks Aunt Millies Bakeries may add in the future. Aunt Millies Bakeries also reserves the right to add or delete any Products or Tradenames at any time due to sales, marketing or availability issues.
Furthermore, the definition of 'Products' includes items purchased by Aunt Millies Bakeries that are compatible with the trademarked products and sold in the Sales Area, as long as Aunt Millies Bakeries makes those products available. It also includes similar fresh baked product sold under the trade names SUNBEAM AND HILL-BILLY, to the extent those Products are distributed in the Sales Area; except that these rights shall continue only for so long as AUNT MILLIE'S retains the franchise rights to these brand names. The definition extends to similar products manufactured and distributed by Aunt Millies Bakeries in non-trademarked wrappings or under private labels owned by third parties, provided that any such private label products shall be only purchased by Distributor and resold as approved and at prices established by the third-party owner of that label.
It is important to note that cuts and pluses and, on rare occasions, cancellations of deliveries, in whole or in part, are an unavoidable aspect of fresh baked goods production. In the event of pluses, DISTRIBUTOR agrees to use best efforts to effect the sale of the additional product. Aunt Millies Bakeries also agrees to repurchase at DISTRIBUTOR'S cost, and give full credit for, any damaged or off code Product which is not damaged or off code by reason of DISTRIBUTOR'S negligence, and which has been promptly returned to a reasonable location designated by AUNT MILLIE'S in accordance with AUNT MILLIE'S' then current stale and damage repurchase policy. AUNT MILLIE'S reserves the right to make reasonable amendments to such stale and damage repurchase policy from time to time.