What credit does the distributor receive when settling accounts with Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
ed from the weekly settlement, whether or not DISTRIBUTOR signs said form. DISTRIBUTOR acknowledges and agrees that the charges on Schedule C" (Form IO13) are subject to change by AUNT MILLIE's at any time.
- §3.5 PURCHASE OF RECEIVABLES: AUNT MILLIE'S shall purchase from DISTRIBUTOR, and the DISTRIBUTOR HEREBY sells, assigns and transfers to AUNT MILLIE'S, all of DISTRIBUTOR'S right, title and interest in and to all of DISTRIBUTOR'S properly filled out and executed charge slips, all existing and future Accounts arising from the sale of Products to Chains or Outlets in the Sales Area and all proceeds thereof from the DISTRIBUTOR, at their face value, net of all discounts, free and clear of all liens, security agreements and encumbrances, other than in favor of, or permitted (in writing) by, AUNT MILLIE'S and its principal lender. AUNT MILLIE'S shall credit DISTRIBUTOR'S account therefor. DISTRIBUTOR shall promptly remit all such slips to AUNT MILLIE'S. If any Chain elects to settle with DISTRIBUTOR on the basis of scan results, rather than charge slips, the credit to DISTRIBUTOR shall be adjusted for any difference between the charge slip and the actual sales reflected by the scan sale data. The foregoing sale and purchase shall continue until termination of this Distribution Agreement, or until DISTRIBUTOR gives written notice of the termination of the foregoing sale to AUNT MILLIE'S, or, with respect to specific Accounts only, AUNT MILLIE'S gives notice that such Account's Chain's or Outlet's credit has not been approved by AUNT MILLIE'S. For purposes of this Section 3.5, "Accounts" shall
mean accounts as defined in the Uniform Commercial Code as in effect in the state of organization of Distributor.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, distributors receive credit for a few different items when settling accounts. Aunt Millie's will purchase the distributor's charge slips and accounts receivable at face value, net of all discounts. This means the distributor gets credit for the full value of sales to chains or outlets, minus any discounts offered. If a chain settles based on scan results instead of charge slips, the credit is adjusted to reflect actual sales data.
Additionally, Aunt Millie's will repurchase damaged or "off code" product (i.e., expired or unsaleable) that wasn't the distributor's fault, providing full credit for those returned items. This protects the distributor from losses due to product spoilage or damage that occurs before it's their responsibility.
Settlement of accounts occurs weekly, with the distributor receiving credit for repurchased damaged or off-code products and purchased receivables. This weekly settlement ensures that the distributor is promptly reimbursed for their sales and any returned products, maintaining a regular cash flow. The distributor is responsible for maximizing sales of products to outlets within their sales area by keeping an adequate and fresh supply of products in all outlets and rotating products to promote their sale before the expiration date.