What is the duration of the Roush License Agreement for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
In our License Agreement ("Roush License Agreement") dated December 10, 1975 with Roush Bakery Products, Inc. ("Roush"), we have the exclusive right to manufacture and sell Hillbilly Bread in certain areas of Indiana and Ohio ("Our Roush Territory"). If your Sales Area is within Our Roush Territory, you may distribute Hillbilly Bread products as well as Aunt Millie's and Koepplinger's products. The term of the Roush License Agreement is for an indefinite period of time, although we may cancel it by giving 120 days written notice. Roush may terminate the Roush License Agreement upon 10 days' notice for cause, including: our failure to follow Roush's recipes, our failure to maintain at least 40 grocery routes for the distribution of Hillbilly Bread, our failure to sell an average of at least 100 units of Hillbilly bread per route per week over a 30 day period, our discontinuing the manufacture and/or sale of the Hillbilly products for a period of 30 or more days, or in the event of our insolvency, assignment for the benefit of creditors, or the filing of a bankruptcy petition.
Source: Item 13 — TRADEMARKS (FDD pages 29–30)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the Roush License Agreement, dated December 10, 1975, has an indefinite term. This agreement grants Aunt Millies Bakeries the exclusive right to manufacture and sell Hillbilly Bread within specific areas of Indiana and Ohio, referred to as "Our Roush Territory." For a prospective franchisee, this means that if their sales area falls within this territory, they are permitted to distribute Hillbilly Bread products in addition to Aunt Millie's and Koepplinger's products.
However, the agreement can be terminated under certain conditions. Aunt Millies Bakeries has the option to cancel the Roush License Agreement by providing Roush Bakery Products, Inc. with 120 days' written notice. Conversely, Roush can terminate the agreement with only 10 days' notice if Aunt Millies Bakeries fails to adhere to Roush's recipes, maintain at least 40 grocery routes for Hillbilly Bread distribution, or sell an average of at least 100 units of Hillbilly bread per route per week over a 30-day period.
Additional causes for termination by Roush include Aunt Millies Bakeries discontinuing the manufacture and/or sale of Hillbilly products for 30 or more days, or in the event of insolvency, assignment for the benefit of creditors, or the filing of a bankruptcy petition. This indefinite term, coupled with specific termination clauses, is not uncommon in licensing agreements, as it allows for a long-term partnership while also protecting the licensor's brand and standards. Prospective franchisees should be aware of these conditions, especially those related to sales volume and distribution, to ensure they can meet the requirements and avoid potential termination of the agreement.