Who determines the amounts of insurance coverage reasonably required for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
omputer Equipment. Such payment shall be charged to DISTRIBUTOR on a weekly basis. This fee is subject to change by AUNT MILLIE'S upon thirty (30) days' notice.
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- USE: DISTRIBUTOR shall use the Computer Equipment exclusively in the operation and service of its distribution of AUNT MILLIE's products.
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- MAINTENANCE: AUNT MILLIE'S or its affiliates shall bear the expense of maintaining the Computer Equipment in good operating condition.
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- **LIABILITY
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, the franchisee (referred to as the "DISTRIBUTOR") is responsible for securing and maintaining an "all risk" insurance policy on the computer equipment provided by Aunt Millies Bakeries. The minimum coverage amount for this insurance is $5,000.
Aunt Millies Bakeries also dictates that they (and any of its affiliates, if requested in writing) must be included as an additional insured and/or loss payee on this policy. The franchisee is then required to provide Aunt Millies Bakeries with a copy of the insurance certificate within 30 days of the agreement's effective date.
This requirement ensures that Aunt Millies Bakeries has a degree of financial protection against damage or loss of their computer equipment used by the franchisee. It is the franchisee's responsibility to bear the expense of this insurance coverage and to comply with the specific requirements set forth by Aunt Millies Bakeries regarding coverage amount and beneficiary status. This is a fairly standard practice in franchising, where franchisors often require franchisees to maintain specific insurance coverage to protect the brand and its assets.