What is the duration of the QBAC Agreement for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
We derive the right to manufacture, sell, and distribute "Sunbeam" products from our agreement ("QBAC Agreement") dated November 20, 1946 with Quality Bakers of America Cooperative, Inc. ("QBAC"), of which we are a member. Our QBAC Territory includes portions of Indiana and Michigan. If your Sales Area is within Our QBAC Territory, you may distribute Sunbeam products as well as Aunt Millie's and Koepplinger's products. The term of the QBAC Agreement is for an indefinite period of time, so long as we remain a Member in good standing of QBAC. As members in QBAC for almost 60 years, we have no reason to believe that our right to manufacture, sell, and distribute "Sunbeam" products will be terminated in the foreseeable future.
Source: Item 13 — TRADEMARKS (FDD pages 29–30)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the QBAC Agreement, which allows Aunt Millies Bakeries to manufacture, sell, and distribute "Sunbeam" products, has an indefinite term. This agreement, dating back to November 20, 1946, remains in effect as long as Aunt Millies Bakeries remains a member in good standing of Quality Bakers of America Cooperative, Inc. (QBAC).
For a prospective franchisee, this indefinite term offers a degree of stability regarding the right to distribute Sunbeam products, assuming the franchisee's sales area falls within Aunt Millies Bakeries's QBAC Territory, which includes portions of Indiana and Michigan. The FDD indicates that Aunt Millies Bakeries has been a member of QBAC for almost 60 years and sees no foreseeable reason for termination of these rights.
However, it is important to note that the continuation of this right is contingent on Aunt Millies Bakeries's continued membership in good standing with QBAC. While the FDD expresses confidence in the continuation of this membership, prospective franchisees should consider the potential risks associated with any changes in this relationship and how that might impact their ability to distribute Sunbeam products. It would be prudent for a potential franchisee to inquire about the specific conditions required to maintain membership in good standing with QBAC and any potential factors that could jeopardize this status.