How long is the initial franchise term for an Aunt Millies Bakeries distribution agreement?

According to the 2025 Aunt Millies Bakeries FDD, the length of the franchise term lasts until it is either sold by the distributor or terminated by Aunt Millie's Bakeries for cause, as defined in the Distribution Agreement. Unlike many franchises with fixed terms and renewal options, the Aunt Millie's Bakeries distribution agreement continues indefinitely unless one of these two events occurs.

This arrangement offers both potential benefits and risks for franchisees. On the one hand, it provides a degree of security, as the agreement does not automatically expire after a set period. A distributor can continue operating as long as they meet their obligations and do not wish to sell the rights. On the other hand, the agreement can be terminated by Aunt Millie's Bakeries if the distributor defaults on their obligations, which means the franchisee must maintain compliance with the agreement to avoid termination.

Potential franchisees should carefully review the sections of the Distribution Agreement that define "cause" for termination. Understanding what constitutes a default, both curable and non-curable, is crucial for maintaining a good standing with Aunt Millie's Bakeries. This indefinite term structure is less common than fixed-term agreements in franchising, so prospective franchisees should fully understand its implications.