What constitutes a curable default that could lead to termination of an Aunt Millies Bakeries distribution agreement?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, a curable default refers to a failure of performance under the distribution agreement that, if rectified within a specified timeframe, will prevent termination of the agreement. These curable defaults are defined in Section 9.3 of the agreement. Examples of curable defaults include failure to pay amounts due or failure to deliver products in a timely and proper manner, as well as termination of any agreements the distributor has with Aunt Millie's Bakeries' affiliates.

If a distributor breaches the agreement in a way that is considered curable, Aunt Millie's Bakeries will provide a written notice, allowing the distributor three business days to correct the breach. Should the distributor fail to cure the breach within this three-day period, Aunt Millie's Bakeries reserves the right to terminate the agreement. After such termination, the distributor will no longer have the right to cure the default.

It is important to note that repeated violations can be considered a chronic breach, which could threaten significant harm to Aunt Millie's Bakeries, its trademarks, or its commercial reputation. In such cases, Aunt Millie's Bakeries may terminate the agreement immediately, and the distributor will not have the right to cure the breach. This distinction between curable and non-curable breaches is critical for distributors to understand to avoid potential termination of their distribution agreement.