What happens to a territory when Aunt Millies Bakeries decides to exit it?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §9.4 ACTIONS FOLLOWING TERMINATION: Termination under either Section 9.2 or Section 9.3 above, shall entitle AUNT MILLIE'S to operate the business for the account of the DISTRIBUTOR, deducting from the revenues generated the reasonable expenses of such performance and delivering the balance, if any, to DISTRIBUTOR. Termination shall require DISTRIBUTOR to sell the Distribution Rights, and in the event that DISTRIBUTOR has not consummated a sale to a qualified purchaser within 90 days of the date of termination, AUNT MILLIE'S shall be authorized to sell DISTRIBUTOR'S Distribution Rights to such a purchaser at the best price which can be obtained after proper notice and advertisement. Said sale shall be for the account of the DISTRIBUTOR, and the provisions of Sections 7.3, 7.4 and 7.5 hereof shall apply.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, if a distributor's agreement is terminated, Aunt Millie's has the right to operate the business associated with that territory. Aunt Millie's will deduct reasonable expenses from any revenues generated during this period. Any remaining balance will be delivered to the distributor.
Termination of the agreement also requires the distributor to sell their distribution rights. If the distributor cannot find a qualified buyer within 90 days of the termination date, Aunt Millie's is authorized to sell the distribution rights themselves. This sale will be conducted at the best obtainable price after providing proper notice and advertisement.
The proceeds from the sale of the distribution rights will be for the account of the distributor, and the provisions outlined in Sections 7.3, 7.4, and 7.5 of the agreement will apply to the sale. This process ensures that the distributor receives any remaining value from the territory after Aunt Millie's has addressed any outstanding expenses or obligations.