What documents must the distributor execute to transfer the assets back to Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
DISTRIBUTOR must notify AUNT MILLIE'S in writing within the one year Buy Back period and at least thirty days prior to exercising the rights under this Agreement. DISTRIBUTOR shall then, by execution of a Bill of Sale, General Release of claims, and, if applicable, the appropriate documents to effect an assignment of lease or sublease of the vehicle, transfer to AUNT MILLIE'S good and marketable title to the Assets and lease rights, free and clear of all liens, security interests or encumbrances. The effective date of that transfer shall be set at the discretion of AUNT MILLIE'S but in no event more than thirty (30) days from receipt of notice.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 FDD, if a distributor exercises their right to sell the assets back to Aunt Millies Bakeries within one year of the agreement's effective date, the distributor must execute specific documents to complete the transfer. These documents include a Bill of Sale, which transfers the title of the assets back to Aunt Millies Bakeries. Additionally, the distributor must provide a General Release of claims, which releases Aunt Millies Bakeries from any potential liabilities or claims the distributor might have.
If the distributor has leased or subleased a vehicle from Aunt Millies Bakeries or an affiliate, they must also execute the appropriate documents to effect an assignment of the lease or sublease. This ensures that the lease rights are properly transferred back to Aunt Millies Bakeries, provided the vehicle is in the same condition as when originally leased or sold, with allowances for ordinary wear and tear.
By executing these documents, the distributor transfers good and marketable title to the assets and lease rights to Aunt Millies Bakeries, ensuring that the assets are free and clear of all liens, security interests, or encumbrances. The effective date of the transfer will be set at the discretion of Aunt Millies Bakeries but will not exceed thirty days from the receipt of the distributor's notice to exercise their buyback rights.