factual

Does the distributor acquire ownership of the computer equipment provided by Aunt Millies Bakeries?

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. OWNERSHIP: DISTRIBUTOR acquires no ownership, title or interest in or to the Computer Equipment, but only the right of use in accordance with the provisions of this Agreement

Source: Item 23 — RECEIPT (FDD pages 44–196)

What This Means (2025 FDD)

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the distributor does not acquire ownership of the computer equipment. Instead, the distributor is granted the right to use the equipment according to the terms of the agreement.

Aunt Millies Bakeries, directly or through its affiliates, provides the distributor with a handheld computer and printer, referred to as the "Computer Equipment." This equipment may be exchanged or replaced by Aunt Millies Bakeries or its affiliates as needed. The distributor is required to pay $30.00 per week, plus sales and use tax, for the use of this equipment. This fee can be changed by Aunt Millies Bakeries with thirty days' notice.

The distributor must use the computer equipment exclusively for the distribution of Aunt Millies Bakeries' products and is responsible for exercising due care in its use and possession. Aunt Millies Bakeries bears the expense of maintaining the equipment in good operating condition. The distributor is required to carry "all risk" insurance on the computer equipment with a minimum coverage of $5,000, naming Aunt Millies Bakeries as an additional insured and/or loss payee.

Upon termination of the agreement, the distributor is responsible for returning the computer equipment to Aunt Millies Bakeries in good condition, with reasonable wear and tear excepted. This arrangement ensures that Aunt Millies Bakeries retains ownership and control over the equipment while allowing the distributor to use it for business operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.