What credits are acknowledged in the weekly settlement between the distributor and Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §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.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the weekly settlement between the distributor and Aunt Millie's acknowledges credits for off-code or damaged products that Aunt Millie's repurchases, provided the damage or expiration wasn't due to the distributor's negligence. These products must be promptly returned to a location designated by Aunt Millie's, following their stale and damage repurchase policy, which Aunt Millie's can amend.
Additionally, the settlement acknowledges credits for receivables that Aunt Millie's purchases from the distributor. This involves Aunt Millie's buying the distributor's rights to charge slips and accounts from product sales to chains or outlets within the sales area. The purchase is at face value, net of discounts, and free of liens, except those favored or permitted by Aunt Millie's.
If a chain settles with the distributor based on scan results instead of charge slips, the credit to the distributor will be adjusted to reflect any differences between the charge slip and the actual sales data from the scan. This ensures that the distributor's credit accurately reflects the actual sales made, regardless of the settlement method used by the chain.