What agreements are amended for Aunt Millies Bakeries franchises in Illinois?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
ement | | | Exhibit H | - | (1) | Aunt Millie’s Bakeries Security Agreement |
Exhibit M
Perfection Bakeries, Inc. ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT And Agreements with Franchisor
FOR THE STATE OF ILLINOIS
Items 5, 7 and 17 of the Franchise Disclosure Document, and all Agreements between Distributor and Perfection Bakeries, Inc. ("PERFECTION BAKERIES"), Franchisor, including the Distribution Agreement, Advertising Agreement, Buy Back Agreement, Computer Equipment Lease Agreement, and Security Agreement (collectively "PERFECTION BAKERIES Agreements") attached as Exhibits C, E, F, G, and H to the Franchise Disclosure Document, are amended as follows:
- The following is added:
Notwithstanding anything to the contrary contained in the Franchise Disclosure Document and the Agreements, all initial fees are deferred and not payable to Franchisor until Franchisor's initial obligations to the Franchisee have been completed and the Franchisee has commenced business under the Distribution Agreement. The Illinois Attorney General's Office imposed this deferral requirement due to the Franchisor's financial condition.
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- Franchisees' rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Disclosure Act.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, arbitration may take place outside of Illinois.
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- Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- The Franchisor may increase the weekly fees related to your computer use. There are no limits on the Franchisor's right to increase these fees.
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- The number of Aunt Millie's franchises in Illinois have decreased since 2019.
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- There is no formal training program and no Operations Manual for this franchise.
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- In the Matter of Perfection Bakeries Inc. d/b/a/ Aunt Millie's Bakeries (Case No. 21-AVC-F001, Illinois). From 2013 to 2018, the Franchisor was eligible for exemption from registration under the Illinois Franchise Disclosure Act ("the Act") based on its net worth ("large franchisor exemption").
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, several agreements are amended for franchisees in Illinois through addenda. Exhibit M outlines amendments to agreements with Perfection Bakeries, Inc., including the Distribution Agreement, Advertising Agreement, Buy Back Agreement, Computer Equipment Lease Agreement, and Security Agreement. These are collectively referred to as "PERFECTION BAKERIES Agreements" and are attached as Exhibits C, E, F, G, and H to the Franchise Disclosure Document.
Additionally, all agreements between the distributor and First Capital Acceptance Corp., including the Promissory Note, Disbursement Authorization, Financing Security Agreement, and Assignment of Receivables (collectively "First Capital Agreements") attached as Exhibit B to the Franchise Disclosure Document, are amended. Similarly, all agreements between the distributor and Distribution Services of America, Inc. ("DSA"), including the Promissory Note, Financing Security Agreement, and Loan Proceeds Distribution Authorization (collectively "DSA Agreements") attached as Exhibit J to the Franchise Disclosure Document, are also amended.
One significant amendment is that all initial fees are deferred and not payable to Aunt Millies Bakeries until the franchisor's initial obligations to the franchisee have been completed and the franchisee has commenced business under the Distribution Agreement. This deferral requirement was imposed by the Illinois Attorney General's Office due to Aunt Millies Bakeries's financial condition. Furthermore, Illinois law governs both the First Capital Agreements and the DSA Agreements. The FDD also stipulates that franchisees' rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Disclosure Act, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state.