Can Aunt Millies Bakeries assign the Distribution Agreement to another party?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millie's Bakeries has the right to assign the Distribution Agreement to another party. Specifically, the FDD states that the Distribution Agreement is freely assignable by Aunt Millie's Bakeries. This means that Aunt Millie's Bakeries can transfer its rights and obligations under the agreement to a third party without needing the distributor's consent.

For a prospective Aunt Millie's Bakeries distributor, this clause indicates that the relationship with Aunt Millie's Bakeries could change if the agreement is assigned to a new entity. The new entity would then be responsible for fulfilling the obligations of the franchisor, and the distributor would have to work with this new entity. This is a standard clause in many franchise agreements, allowing the franchisor flexibility in its business operations.

While Aunt Millie's Bakeries has the right to assign the agreement, the FDD also states that the obligations of the distributor survive the termination of the agreement and are binding upon the heirs, personal representatives, successors, or assigns of the parties. This ensures that the distributor's responsibilities continue even if the agreement is assigned or terminated. Additionally, any obligations of Aunt Millie's Bakeries may be undertaken by its affiliates, but Aunt Millie's Bakeries remains responsible for them.