Who does Aunt Millies Bakeries hold responsible for compliance with the Distribution Agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
DISTRIBUTOR in all events shall be and remain responsible for insuring that all persons engaged by DISTRIBUTOR comply fully with all the terms and conditions of this Agreement. Any breach of this Agreement by any person engaged by DISTRIBUTOR shall be deemed to be a breach by DISTRIBUTOR.
§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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 31)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the distributor is responsible for ensuring compliance with the terms and conditions of the Distribution Agreement. This responsibility extends to all individuals engaged by the distributor. Any breach of the agreement by someone engaged by the distributor is considered a breach by the distributor themselves.
This means that if a distributor hires employees or subcontractors to help with their Aunt Millies Bakeries distribution business, the distributor is ultimately accountable for their actions. It is crucial for prospective franchisees to understand that they cannot delegate their responsibilities under the Distribution Agreement and must actively manage and oversee anyone working on their behalf.
Furthermore, failure to meet the obligations outlined in the agreement can result in termination of the agreement by Aunt Millies Bakeries. However, the distributor is not held responsible for failures caused by events outside of their control, such as "Force Majeure" events. Even in such cases, the distributor remains obligated to pay for products as per the agreement.