Is an Aunt Millies Bakeries franchisee allowed to participate in activities that interfere with their obligations under the Distribution Agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
§4.4 NON-COMPLIANCE: Failure to carry out the obligations listed in this Article or elsewhere in this Agreement shall be considered a breach of this Agreement and shall entitle AUNT MILLIE'S to terminate this Agreement as more specifically set forth in Article 9 hereof, except that DISTRIBUTOR shall not be responsible for failures caused by Force Majeure; provided, however, that an event of Force Majeure shall not excuse DISTRIBUTOR from any obligations to pay for Products pursuant to Article 3.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 32)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, franchisees are expected to adhere to the obligations outlined in the Distribution Agreement. Specifically, Article 4.4 addresses non-compliance, stating that failure to fulfill the obligations listed in the agreement constitutes a breach, potentially leading to termination of the agreement by Aunt Millie's Bakeries.
The Distribution Agreement outlines various obligations for the franchisee. These include developing and maximizing the sale of products, compliance with standards and policies, and adherence to trademark regulations. If a franchisee engages in activities that hinder their ability to meet these obligations, it would be considered a breach of the agreement.
Aunt Millie's Bakeries retains the right to terminate the Distribution Agreement if a franchisee fails to meet their obligations. However, the franchisee is not held responsible for failures caused by events outside of their control. It is important to note that even in the event of such circumstances, the franchisee remains obligated to pay for products as per Article 3 of the agreement.