How are leases classified by Aunt Millies Bakeries, and what does this classification affect?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
INC., d/b | /a AUN] | MIL | LIE'S an | | Indiana business corporation with its prin | ncipal of | ice at 3 | 350 Pearl | | Street, Fort Wayne, Indiana 46802 (herein referred to as "A | AUNT M | ILLIE | 'S") and | | [DISTRIBUTOR'S CORPORATE NAME], a | busii | ess co | rporation | | with its principal office at [DISTRIBUTOR'S ADDRES | S], (here | n refei | rred to as | | LESSOR"). | | | |
In consideration of the mutual promises contained herein the parties agree as follows:
- DELIVERY VEHICLE ADVERTISING AGREEMENT: LESSOR agrees to rent to AUNT MILLIE'S for the limited purposes of advertising AUNT MILLIE'S Products, the outside painted surfaces of the primary delivery vehicle utilized by LESSOR in the operation of its business. AUNT MILLIE'S agrees, in consideration of this rental, to provide and pay for the cost of applying advertising decals or materials to said vehicle, and to further pay as and for a space rental fee, the sum of $60/week. In consideration of such rental payments, LESSOR agrees to maintain said vehicle in a clean and neat condition, consistent with the best possible image for AUNT MILLIE'S in the marketplace, to repaint the vehicle from time to time as AUNT MILLIE'S may reasonably require, and to make the vehicle available to AUNT MILLIE'S on reasonable notice and at reasonable times, for the purpose of enabling AUNT MILLIE'S to place or
amend its advertising materials on the vehicle. AUNT MILLIE'S shall be solely responsible for the content of any advertising material and shall bear all expenses incurred in connection with placing, amending and/or removing of such advertising materials in the advertising space. In the event AUNT MILLIE'S, in its sole judgment, determines that LESSOR is not complying with the requirements of this Article AUNT MILLIE's may withhold rental payments, and if LESSOR fails to take reasonable steps to comply after notice from AUNT MILLIE'S, AUNT MILLIE'S shall be entitled to terminate this Vehicle Advertising Agreement on ten (10) days notice to LESSOR, and LESSOR shall immediately make the vehicle available to AUNT MILLIE'S for the purpose of having the advertising materials removed.
2. CLOTHING ADVERTISING AGREEMENT: LESSOR agrees to rent to AUNT MILLIE'S for the limited purposes of advertising AUNT MILLIE'S Products, all items of approved clothing worn by LESSOR's personnel in connection with the operation of its business appropriate for such use. AUNT MILLIE'S agrees to pay for such space rental the sum of $60/week. In consideration of such rental payments, LESSOR agrees to maintain all such items of clothing in a clean and neat condition, to maintain standards of dress and personal grooming consistent with AUNT MILLIE'S clothing advertising policy, as the same may be amended from time to time, and consistent with the best possible image for AUNT MILLIE'S in the marketplace, and to make such items of clothing available to AUNT MILLIE'S on reasonable notice and at reasonable times for the purpose of enabling AUNT MILLIE'S to place or amend its advertising materials on the clothing. AUNT MILLIE'S shall be solely responsible for the content of any advertising material and shall bear all expenses incurred in connection with placing, amending and/or removing of such advertising materials in the advertising space. In the event AUNT MILLIE'S, in
its sole judgment, determines that LESSOR is not complying with the requirements of this Article, AUNT MILLIE's may withhold rental payments, and if LESSOR fails to take reasonable steps to comply after notice from AUNT MILLIE'S , AUNT MILLIE'S shall be entitled to terminate this Clothing Advertising Agreement on ten (10) days notice to LESSOR and LESSOR shall immediately make the clothing available to AUNT MILLIE'S for the purpose of having the advertising materials removed.
- 3. RESTRICTED USE: This Agreement shall not be interpreted or construed by either party to authorize or license the LESSOR to use the tradenames or trademarks of AUNT MILLIE'S in any way other than as set forth in paragraphs 1 and 2 above, nor authorize either party to act as agent or employee of the other.
- **4.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Aunt Millies Bakeries engages in lease agreements primarily for advertising purposes, specifically for delivery vehicles and clothing worn by personnel. These are not traditional real estate leases for business locations. Aunt Millie's leases the advertising space on the franchisee's delivery vehicles for $60 per week. In return, the franchisee must maintain the vehicle in a clean and neat condition and repaint it as reasonably required by Aunt Millie's. Aunt Millie's is responsible for the advertising content and expenses related to placing or removing advertising materials.
Similarly, Aunt Millie's also leases advertising space on the clothing worn by the franchisee's personnel for $60 per week. The franchisee is obligated to maintain the clothing in a clean and neat condition, adhering to Aunt Millie's clothing advertising policy and standards of personal grooming. Aunt Millie's retains control over the advertising content and bears the associated expenses.
These advertising lease agreements can be terminated by Aunt Millie's if the franchisee fails to comply with the requirements, such as maintaining the vehicle or clothing in acceptable condition. In such cases, Aunt Millie's may withhold rental payments and, after providing notice, terminate the agreement, requiring the franchisee to make the vehicle or clothing available for the removal of advertising materials. Additionally, Aunt Millie's requires that the authorization to deduct for loans and leases is a condition of the lender's and lessor's consents to make the loans and leases and may not be terminated, but that the authorization to deduct for bookkeeping and insurance payments is optional and may be terminated at any time on 30 days written notice.