Can Aunt Millies Bakeries assign the distribution agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
tage pre-paid. All notices shall be addressed to DIS-TRIBUTOR at the address stated above and to AUNT MILLIE'S, at the address indicated in Schedule B attached hereto. Either party may designate another address for receipt of notices by written notice duly given in accordance with this Section 12.1.
- §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 the 2025 Aunt Millies Bakeries Franchise Disclosure Document, the distribution agreement is assignable by Aunt Millies Bakeries. Specifically, the agreement outlines that any obligations of Aunt Millies Bakeries can be undertaken by its affiliates, but Aunt Millies Bakeries remains responsible.
This means that Aunt Millies Bakeries has the right to transfer the distribution agreement to another party. However, the distributor does not have the same right. The agreement explicitly states that it is personal to the distributor and cannot be sold or assigned to any third party.
This clause protects Aunt Millies Bakeries, giving them flexibility in managing their distribution network. However, it also means that a distributor cannot transfer their agreement to another party, which could limit their ability to sell the distribution rights to someone else.