What do lease liabilities represent for Aunt Millies Bakeries?

Based on the 2025 Aunt Millies Bakeries Franchise Disclosure Document, the document mentions lease liabilities in the context of deductions that can be made from a distributor's payments, but it does not specify what these lease liabilities are for. The document indicates that Aunt Millie's is not obligated to make such deductions or pay any referenced obligations and has no obligation in connection with this authorization except to account for monies actually deducted.

According to the FDD, the authorization to deduct for the loans and lease is a condition of Lenders' and Lessor's consents to make the loans and lease and may not be terminated. However, the authorization to deduct for bookkeeping and insurance payments is optional and may be terminated at any time with 30 days written notice. This suggests that lease liabilities are related to agreements between the distributor and lessors, where Aunt Millie's may facilitate payments through deductions.

To fully understand the nature of these lease liabilities, a prospective Aunt Millies Bakeries franchisee should seek clarification from the franchisor regarding the types of leases involved (e.g., vehicle leases, equipment leases), the typical amounts of these liabilities, and the specific conditions under which these deductions are made. Understanding these details is crucial for assessing the financial obligations and operational requirements of the franchise.