What are some examples of curable defaults that could lead to termination of an Aunt Millies Bakeries distribution agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Distribution Agreement | Summary | |
|---|---|---|---|
| g. | “Cause” defined - curable defaults | §9.3 | Any event of failure of performance other than those in §9.2. Examples are failure to pay amounts due, failure to deliver Products in a timely and proper manner, termination of any agreements you have with our Affiliates |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, a distributor's agreement can be terminated if the distributor defaults on their obligations. Certain defaults are curable, meaning the distributor has an opportunity to fix the issue and avoid termination.
Examples of curable defaults include failure to pay amounts due and failure to deliver products in a timely and proper manner. Additionally, termination of any agreements the distributor has with Aunt Millie's Bakeries' affiliates also constitutes a curable default. If a distributor breaches the agreement or any agreement with Aunt Millie's Bakeries' affiliates (excluding non-curable breaches), Aunt Millie's Bakeries will provide a three-business-day written notice for the distributor to correct the breach.
However, if the distributor fails to cure the breach within the three-day period, Aunt Millie's Bakeries can terminate the agreement, and the distributor loses the right to cure the default. It is important to note that repeated violations can be considered a chronic breach that threatens significant harm to Aunt Millie's Bakeries' trademarks or commercial reputation, leading to immediate termination without the right to cure.