Does the Aunt Millies Bakeries agreement acknowledge that cuts, pluses, and cancellations of deliveries are possible?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the agreement does acknowledge the possibility of delivery adjustments. Specifically, it recognizes that due to the nature of fresh baked goods production, there may be instances of "cuts and pluses and, on rare occasions, cancellations of deliveries, in whole or in part." This acknowledgement indicates that the distributor should anticipate potential fluctuations in order fulfillment.
For a prospective Aunt Millies Bakeries distributor, this means understanding that the quantity of products ordered may not always be precisely what is delivered. "Cuts" would imply receiving less product than ordered, while "pluses" mean receiving more. The agreement stipulates that in the event of "pluses", the distributor is expected to make their best effort to sell the additional product. This could require extra sales efforts to avoid spoilage and financial loss.
Furthermore, Aunt Millies Bakeries agrees to repurchase damaged or "off code" (expired) products at the distributor's cost, provided the damage or expiration wasn't due to the distributor's negligence. The distributor must promptly return these products to a designated location according to Aunt Millie's stale and damage repurchase policy. This policy is subject to change, so the distributor needs to stay informed of any amendments. This buy-back agreement helps to mitigate potential losses from unsold or unsalable products, a common practice in the food distribution industry.