Who bears the expense of maintaining the computer equipment for Aunt Millies Bakeries distributors?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- FEE: DISTRIBUTOR shall pay to AUNT MILLIE'S or its affiliates, the sum of $30.00, plus sales and use tax, per week for the use of the Computer Equipment. Such payment shall be charged to DISTRIBUTOR on a weekly basis. This fee is subject to change by AUNT MILLIE'S upon thirty (30) days' notice.
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- USE: DISTRIBUTOR shall use the Computer Equipment exclusively in the operation and service of its distribution of AUNT MILLIE's products.
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- MAINTENANCE: AUNT MILLIE'S or its affiliates shall bear the expense of maintaining the Computer Equipment in good operating condition.
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- LIABILITY AND INSURANCE: DISTRIBUTOR, at its own expense, shall carry "all risk" insurance on the Computer Equipment in the minimum amount of $5,000 and AUNT MILLIE'S (and any of its affiliates that may be requested in writing by AUNT MILLIE'S) shall be included and named as an additional insured and/or loss payee. DISTRIBUTOR shall provide AUNT MILLIE'S a copy of such insurance certificate w
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, Aunt Millie's or its affiliates bear the expense of maintaining the computer equipment in good operating condition. This means that the distributor is not responsible for covering the costs associated with keeping the computer equipment functional.
However, the distributor is responsible for exercising due and reasonable care in the use and possession of the computer equipment. Additionally, the distributor is required to carry "all risk" insurance on the computer equipment with a minimum amount of $5,000, naming Aunt Millie's as an additional insured and/or loss payee. The distributor must provide Aunt Millie's with a copy of the insurance certificate within 30 days of the agreement's effective date.
Upon termination of the agreement, the distributor is responsible for returning the computer equipment to Aunt Millie's place of business in good condition, with reasonable wear and tear excepted, and the distributor bears the expense of returning the equipment. While Aunt Millie's covers the maintenance costs, the distributor has responsibilities regarding the equipment's care, insurance, and return.