What are the conditions under which Aunt Millies Bakeries may withhold rental payments for vehicle advertising?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the company may withhold rental payments for vehicle advertising if, in its sole judgment, it determines that the lessor (the franchisee) is not complying with the requirements outlined in the Vehicle Advertising Agreement. This agreement stipulates that the franchisee, as the lessor, rents the outside surfaces of their primary delivery vehicle to Aunt Millies Bakeries for advertising purposes. In return for a $60 per week rental fee, the franchisee must maintain the vehicle in a clean and neat condition, repaint it as reasonably required by Aunt Millies Bakeries, and make it available for the placement or amendment of advertising materials.

This conditionality places a significant responsibility on the franchisee to adhere to Aunt Millies Bakeries's standards for vehicle appearance and maintenance. The "sole judgment" clause grants Aunt Millies Bakeries considerable discretion in determining compliance, which could be a point of concern for franchisees. If Aunt Millies Bakeries deems the vehicle is not up to standard, they can immediately withhold the $60 weekly rental payment.

Furthermore, if the franchisee fails to take reasonable steps to comply with the agreement after receiving notice from Aunt Millies Bakeries, the company has the right to terminate the Vehicle Advertising Agreement with just ten days' notice. Upon termination, the franchisee must immediately make the vehicle available for the removal of advertising materials. This clause underscores the importance of maintaining the vehicle to Aunt Millies Bakeries's satisfaction and responding promptly to any concerns raised by the company to avoid potential loss of advertising revenue and termination of the agreement.

Prospective franchisees should carefully consider these conditions and ensure they are prepared to meet Aunt Millies Bakeries's standards for vehicle maintenance and advertising display. It would be prudent to discuss these requirements in detail with Aunt Millies Bakeries during the due diligence process to fully understand the expectations and potential consequences of non-compliance.