Who does the Aunt Millies Bakeries agreement bind and benefit?
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 distribution agreement's obligations extend beyond the original parties. Specifically, the agreement is binding upon the heirs, personal representatives, successors, or assigns of both the distributor and Aunt Millie's Bakeries. This means that if the distributor or Aunt Millie's Bakeries undergoes a change in ownership or legal status, the agreement remains in effect.
Furthermore, the agreement acknowledges that Aunt Millie's Bakeries' obligations may be undertaken by its affiliates from time to time. However, Aunt Millie's Bakeries remains ultimately responsible for ensuring these obligations are met. This provides Aunt Millie's Bakeries with the flexibility to involve its related entities in fulfilling the agreement while maintaining its overall accountability.
Finally, the agreement is assignable by Aunt Millie's Bakeries, meaning Aunt Millie's Bakeries has the right to transfer its rights and responsibilities under the agreement to another party. This clause provides Aunt Millie's Bakeries with an exit strategy or the ability to restructure its operations in the future. However, the FDD does not specify whether there are any restrictions or conditions on Aunt Millie's Bakeries' ability to assign the agreement.