What efforts will Aunt Millies Bakeries use to negotiate with Chains on the franchisee's behalf?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Use commercially reasonable efforts to negotiate with Chains (as defined in §1.6 of the Distribution Agreement) on your behalf (Distribution Agreement, §5.2);
Source: Item 11 — FRANCHISOR'S OBLIGATIONS (FDD pages 25–27)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millies Bakeries will use commercially reasonable efforts to negotiate with Chains on behalf of its franchisees. The FDD specifies that this obligation is detailed in Section 5.2 of the Distribution Agreement.
For a prospective franchisee, this means that Aunt Millies Bakeries commits to making reasonable efforts to assist in negotiations with larger chain outlets to carry their products. This support could be valuable for franchisees who may lack the experience or resources to negotiate effectively with these larger entities.
However, the term "commercially reasonable efforts" is subjective and not clearly defined in the FDD. It is important to note that Aunt Millies Bakeries is only obligated to make a reasonable effort, not guarantee successful negotiations or specific outcomes. A potential franchisee should seek clarification from Aunt Millies Bakeries regarding the specific actions they will take during these negotiations and what resources they will provide to support the franchisee's sales efforts with chain outlets.