What constitutes a non-curable default under the Aunt Millies Bakeries Distribution Agreement?

According to the 2025 Aunt Millies Bakeries Franchise Disclosure Document, a non-curable default under the Distribution Agreement occurs if the distributor's breach involves criminal activity, threatens public health or safety, constitutes abandonment of any portion of the sales area, or threatens significant harm to Aunt Millie's Bakeries, its trademarks, or commercial reputation. In such instances, Aunt Millie's Bakeries can terminate the agreement immediately upon written notice, and the distributor does not have the right to cure the breach.

This means that if a franchisee engages in activities that fall under these categories, Aunt Millie's Bakeries has the right to terminate the agreement without providing an opportunity for the franchisee to correct the issue. This is a significant risk for franchisees, as any action that Aunt Millie's Bakeries deems to be a threat to its reputation or involves criminal activity could lead to immediate termination.

It is important for prospective Aunt Millie's Bakeries franchisees to understand the implications of these non-curable defaults and to ensure that their business practices align with the franchisor's expectations. Franchisees should seek legal counsel to fully understand their rights and obligations under the Distribution Agreement and to mitigate the risk of termination for non-curable defaults.