Does the Aunt Millies Bakeries agreement allow for obligations of Aunt Millie's to be undertaken by its affiliates?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §12.2 SURVIVAL, BINDING AGREEMENT, AUNT MILLIE'S AFFILIATES: The obligations of DISTRIBUTOR shall survive the termination of this Agreement. This Agreement shall be binding upon heirs, personal representatives, successors or assigns of the parties hereto. The parties recognize and agree that any obligations of AUNT MILLIE'S hereunder may from time to time be undertaken by Affiliates of AUNT MILLIE'S, but AUNT MILLIE'S shall remain responsible therefore. This Agreement is assignable by AUNT MILLIE'S.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the obligations of Aunt Millie's can be undertaken by its affiliates. Specifically, the agreement states that any obligations of Aunt Millie's may be undertaken by its affiliates from time to time. However, Aunt Millie's remains responsible for these obligations even if an affiliate undertakes them. This means that while an affiliate might handle certain duties or responsibilities, Aunt Millie's is ultimately accountable for ensuring those obligations are met.
For a prospective franchisee, this clause offers a degree of assurance. Even if an affiliate is involved in fulfilling certain obligations, Aunt Millie's itself remains liable. This could be beneficial if an affiliate fails to meet its responsibilities, as the franchisee can still hold Aunt Millie's accountable.
This arrangement is not uncommon in franchising, where franchisors often use affiliated companies to handle specific functions such as supply chain management, marketing, or training. However, the explicit statement that Aunt Millie's remains responsible is a notable point that provides additional security for the franchisee. The agreement is also assignable by Aunt Millie's, meaning they can transfer the agreement to another party.