What are the credit terms that Aunt Millies Bakeries offers to its customers?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
cordance with AUNT MILLIE'S' then current stale and damage repurchase policy. AUNT MILLIE'S reserves the right to make reasonable amendments to such stale and damage repurchase policy from time to time.
- §3.3 TERMS: Products will be sold to DISTRIBUTOR on terms and prices established by AUNT MILLIE'S from time to time.
- §3.4 SETTLEMENT OF ACCOUNT: On or before Friday of each week, the parties agree to settle their accounts for all Products delivered to DISTRIBUTOR during the preceding week, acknowledging DISTRIBUTOR'S credit for any off code or damaged Products repurchased in accordance with §3.2 above, and receivables purchased pursuant to §3.5, below. The profit margins on the Products sold by DISTRIBUTOR will be established by AUNT MILLIE's and are subject to change at any time.. DISTRIBUTOR agrees that Non-Recurring Charges noted on Form IO13 attached to this Agreement as Schedule "C" will be assessed and deducted 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.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, products are sold to the distributor based on terms and prices established by Aunt Millies Bakeries, which may change over time. The distributor and Aunt Millies Bakeries must settle their accounts weekly, specifically on or before Friday of each week, for all products delivered in the preceding week. This settlement acknowledges any credits the distributor receives for damaged or off-code products that Aunt Millies Bakeries repurchased, as well as receivables purchased according to a separate agreement.
Aunt Millies Bakeries purchases receivables from the distributor, which means Aunt Millies Bakeries buys the distributor's rights to the money owed from sales to chains or outlets. This purchase is for the face value of the charge slips, minus any discounts, and is free of liens or encumbrances unless Aunt Millies Bakeries approves them. Aunt Millies Bakeries credits the distributor's account for these receivables, and the distributor must promptly submit all charge slips to Aunt Millies Bakeries. If a chain settles based on scan results instead of charge slips, the credit to the distributor will be adjusted to reflect the actual sales data.
This arrangement continues until the Distribution Agreement terminates, the distributor gives written notice to end the sale, or Aunt Millies Bakeries notifies the distributor that a specific chain or outlet's credit is not approved. First Capital Acceptance Corp. (FCAC) would pay interest at the current rate on the line of credit, but not greater than 5% annually. These payment terms are subject to change at the determination of FCAC.