Between what dates was Aunt Millies Bakeries not registered under the Illinois Franchise Disclosure Act?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- There is no formal training program and no Operations Manual for this franchise.
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- In the Matter of Perfection Bakeries Inc. d/b/a/ Aunt Millie's Bakeries (Case No. 21-AVC-F001, Illinois). From 2013 to 2018, the Franchisor was eligible for exemption from registration under the Illinois Franchise Disclosure Act ("the Act") based on its net worth ("large franchisor exemption"). In October of 2020 the Franchisor discovered and promptly brought to the attention of the Office of the Attorney General of Illinois (the "Attorney General") that in fiscal years 2018 and 2019 it no longer met the net worth requirements of the large franchisor exemption under the Act. The Franchisor was not registered under the Act between January 2019 and October 2020. Based on the information provided to the Attorney General by the Franchisor, the Illinois Attorney General concluded that grounds existed to allege that between January 2019 to October 2020, the
Franchisor sold four new franchises and entered into new franchise agreements with Illinois residents during such period, without being registered, in violation of the Act. Without the Franchisor admitting or denying any violation of laws, the Attorney General and the Franchisor reached an agreement to enter into an Assurance of Voluntary Compliance, in which the Franchisor agreed to: (1) refrain from offering and selling franchises in Illinois without being properly registered; (2) offer the affected franchisees with rescission of their franchise agreements (Distribution Agreements); and (3) pay the State of Illinois the sum of $4,000. This matter was settle
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the company was not registered under the Illinois Franchise Disclosure Act between January 2019 and October 2020. This lack of registration stemmed from the company no longer meeting the net worth requirements for a large franchisor exemption in fiscal years 2018 and 2019. Aunt Millie's Bakeries promptly informed the Illinois Attorney General's Office upon discovering this discrepancy in October 2020.
During the period of non-registration, Aunt Millies Bakeries sold four new franchises and entered into franchise agreements with Illinois residents, which constituted a violation of the Act. To resolve this, the Attorney General and Aunt Millies Bakeries reached an agreement formalized in an Assurance of Voluntary Compliance dated December 21, 2020. As part of this agreement, while not admitting any legal violations, Aunt Millies Bakeries committed to refraining from offering or selling franchises in Illinois without proper registration.
Furthermore, Aunt Millies Bakeries offered the affected franchisees the option to rescind their franchise agreements (referred to as Distribution Agreements) and paid the State of Illinois $4,000. This situation highlights the importance of franchisors maintaining compliance with state franchise laws and the potential consequences of failing to meet registration requirements. Prospective franchisees should verify that Aunt Millies Bakeries is currently registered in Illinois or any other state where they plan to operate to ensure compliance with local regulations.