How can the Aunt Millies Bakeries agreement be changed?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
t relieve DISTRIBUTOR of any of the obligations imposed by this Agreement, constitute an assumption by AUNT MILLIE'S of any obligations of DISTRIBUTOR, nor act to cure any default that may exist on the part of DISTRIBUTOR by reason of such non performance.
§8.2 CHANGE IN DELIVERY METHOD: In the event any Outlet makes the determination to require delivery or merchandising of the Products by any method other than Direct Store Delivery, and so informs AUNT MILLIE'S or DISTRIBUTOR, AUNT MILLIE'S shall thereafter be permitted to sell Products directly to such Outlet, which action shall not be deemed to violate DISTRIBUTOR'S rights hereunder and DISTRIBUTOR shall not be entitled to any proceeds derived from such service by AUNT MILLIE'S. For example, if an Outlet desires to merchandise Products itself or through a third party other than DISTRIBUTOR for any reason and so informs AUNT MILLIE'S, it shall not be a breach of this Agreement if AUNT MILLIE'S thereafter sells Products directly to such Outlet. Further, DISTRIBUTOR shall not be entitled to any compensation from AUNT MILLIE'S in such instance. However, DISTRIBUTOR shall continue to own those Distribution Rights associated with such an Outlet. Using the previous example, if said Outlet desires to reinstate merchandising of Products through AUNT MILLIE'S, then DISTIBUTOR shall have the exclusive right to provide those services on AUNT MILLIE'S behalf to such Outlet.
ARTICLE 9 TERMINATION
- §9.1 BREACH: Except as set forth in this Article, or upon the sale or transfer of all of the DISTRIBUTOR'S Distribution Rights, this Agreement shall not be terminated or canceled, provided DISTRIBUTOR carries out the terms hereof.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
Based on the 2025 Aunt Millies Bakeries Franchise Disclosure Document, the agreement can be changed under specific circumstances related to delivery methods. If an outlet decides to change its delivery method from Direct Store Delivery and informs Aunt Millies Bakeries or the distributor, Aunt Millies Bakeries is allowed to sell products directly to that outlet. This change in delivery method will not be considered a violation of the distributor's rights, and the distributor will not receive any proceeds from Aunt Millies Bakeries' direct sales to the outlet. However, the distributor retains the distribution rights for that outlet, meaning if the outlet wants to reinstate merchandising through Aunt Millies Bakeries, the distributor has the exclusive right to provide those services.
Additionally, the profit margins on products sold by the distributor are established by Aunt Millies Bakeries and are subject to change at any time. Non-Recurring Charges, as noted on Form IO13 (Schedule "C"), will be assessed and deducted from the weekly settlement, regardless of whether the distributor signs the form. The charges on Schedule C (Form IO13) are also subject to change by Aunt Millies Bakeries at any time.
These provisions indicate that while the core distribution agreement remains in place, Aunt Millies Bakeries retains the right to modify certain operational aspects, such as delivery methods and pricing structures, which can impact the distributor's business. A prospective franchisee should be aware of these potential changes and how they might affect their revenue and operational strategies.