What is the geographic scope of Aunt Millies Bakeries' QBAC Territory?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the QBAC Territory includes portions of Indiana and Michigan. The QBAC Territory is relevant because if a franchisee's Sales Area falls within it, they are permitted to distribute Sunbeam products in addition to Aunt Millie's and Koepplinger's products. Aunt Millies Bakeries derives the right to manufacture, sell, and distribute "Sunbeam" products from their agreement with Quality Bakers of America Cooperative, Inc. ("QBAC"), dating back to November 20, 1946. The agreement remains in effect as long as Aunt Millies Bakeries remains a member in good standing of QBAC. They have been members for almost 60 years and do not anticipate termination of their rights.

For a prospective franchisee, understanding the boundaries of the QBAC Territory is crucial for determining which products they are authorized to sell. If a franchisee's Sales Area is outside of the QBAC Territory, they would not be able to distribute Sunbeam products. This could impact their potential revenue and business strategy. It is important to note that the agreement with QBAC is for an indefinite period, but continued membership in good standing is required to maintain the right to distribute Sunbeam products.

In addition to the QBAC territory, Aunt Millies Bakeries also has an exclusive right to manufacture and sell Hillbilly Bread in certain areas of Indiana and Ohio ("Our Roush Territory") through a license agreement with Roush Bakery Products, Inc. If a franchisee's Sales Area is within the Roush Territory, they may distribute Hillbilly Bread products as well as Aunt Millie's and Koepplinger's products. The Roush License Agreement, dated December 10, 1975, is also for an indefinite period but can be canceled by Aunt Millies Bakeries with 120 days written notice or terminated by Roush upon 10 days' notice for cause, such as failure to meet certain sales or operational requirements.