How can Aunt Millies Bakeries cancel the Roush License Agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
In our License Agreement ("Roush License Agreement") dated December 10, 1975 with Roush Bakery Products, Inc. ("Roush"), we have the exclusive right to manufacture and sell Hillbilly Bread in certain areas of Indiana and Ohio ("Our Roush Territory"). If your Sales Area is within Our Roush Territory, you may distribute Hillbilly Bread products as well as Aunt Millie's and Koepplinger's products. The term of the Roush License Agreement is for an indefinite period of time, although we may cancel it by giving 120 days written notice. Roush may terminate the Roush License Agreement upon 10 days' notice for cause, including: our failure to follow Roush's recipes, our failure to maintain at least 40 grocery routes for the distribution of Hillbilly Bread, our failure to sell an average of at least 100 units of Hillbilly bread per route per week over a 30 day period, our discontinuing the manufacture and/or sale of the Hillbilly products for a period of 30 or more days, or in the event of our insolvency, assignment for the benefit of creditors, or the filing of a bankruptcy petition.
Source: Item 13 — TRADEMARKS (FDD pages 29–30)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the Roush License Agreement, dated December 10, 1975, grants Aunt Millies Bakeries the exclusive right to manufacture and sell Hillbilly Bread in specific areas of Indiana and Ohio. This agreement has an indefinite term, but Aunt Millies Bakeries has the option to cancel it.
Aunt Millies Bakeries can cancel the Roush License Agreement by providing Roush Bakery Products, Inc. with 120 days written notice. This provides Aunt Millies Bakeries with a degree of flexibility in managing its product offerings and territories.
However, the agreement also specifies conditions under which Roush can terminate the agreement with only 10 days' notice. These conditions include Aunt Millies Bakeries's failure to follow Roush's recipes, failure to maintain at least 40 grocery routes for Hillbilly Bread distribution, failure to sell an average of at least 100 units of Hillbilly bread per route per week over a 30-day period, discontinuing the manufacture or sale of Hillbilly products for 30 or more days, or in the event of insolvency, assignment for the benefit of creditors, or filing a bankruptcy petition. These stipulations highlight the importance of Aunt Millies Bakeries adhering to the terms of the agreement to maintain its rights to sell Hillbilly Bread.