How does Aunt Millies Bakeries define lease liabilities?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| HIS ADVERTISING AGREEMENT | C (this " | Agreen | nent") is |
|---|---|---|---|
| made effective, 20 | , by | and | between |
| PERFECTION BAKERIES, INC., d/b | /a AUN] | MIL | LIE'S an |
| Indiana business corporation with its prin | ncipal of | ice at 3 | 350 Pearl |
| Street, Fort Wayne, Indiana 46802 (herein referred to as "A | AUNT M | ILLIE | 'S") and |
| [DISTRIBUTOR'S CORPORATE NAME], a | busii | ess co | rporation |
| with its principal office at [DISTRIBUTOR'S ADDRES | S], (here | n refei | rred to as |
| LESSOR"). |
In consideration of the mutual promises contained herein the parties agree as follows:
- DELIVERY VEHICLE ADVERTISING AGREEMENT: LESSOR agrees to rent to AUNT MILLIE'S for the limited purposes of advertising AUNT MILLIE'S Products, the outside painted surfaces of the primary delivery vehicle utilized by LESSOR in the operation of its business. AUNT MILLIE'S agrees, in consideration of this rental, to provide and pay for the cost of applying advertising decals or materials to said vehicle, and to further pay as and for a space rental fee, the sum of $60/week. In consideration of such rental payments, LESSOR agrees to maintain said vehicle in a clean and neat condition, consistent with the best possible image for AUNT MILLIE'S in the marketplace, to repaint the vehicle from time to time as AUNT MILLIE'S may reasonably require, and to make the vehicle available to AUNT MILLIE'S on reasonable notice and at reasonable times, for the purpose of enabling AUNT MILLIE'S to place or
amend its advertising materials on the vehicle. AUNT MILLIE'S shall be solely responsible for the content of any advertising material and shall bear all expenses incurred in connection with placing, amending and/or removing of such advertising materials in the advertising space. In the event AUNT MILLIE'S, in its sole judgment, determines that LESSOR is not complying with the requirements of thi
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
I am unable to provide a definition of lease liabilities, according to Aunt Millies Bakeries' 2025 Franchise Disclosure Document. While the document mentions leases, it does not specifically define "lease liabilities." Item 23 references a lease in the context of vehicle advertising, where Aunt Millie's may rent advertising space on a distributor's vehicle for $60 per week. Additionally, there's a mention of deductions for loans and leases that are a condition of lenders' and lessors' consents.
To fully understand the definition of lease liabilities, a prospective Aunt Millies Bakeries franchisee should ask the franchisor for clarification. Specifically, they should inquire about how the company accounts for leases, what constitutes a lease liability, and what the franchisee's obligations are regarding leases.
Understanding the full scope of lease liabilities is crucial for assessing the financial obligations and risks associated with the franchise. This information will help a franchisee make informed decisions and plan their business operations effectively.