What is the minimum amount of cargo insurance required for distributors of Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
omputer Equipment. Such payment shall be charged to DISTRIBUTOR on a weekly basis. This fee is subject to change by AUNT MILLIE'S upon thirty (30) days' notice.
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- USE: DISTRIBUTOR shall use the Computer Equipment exclusively in the operation and service of its distribution of AUNT MILLIE's products.
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- MAINTENANCE: AUNT MILLIE'S or its affiliates shall bear the expense of maintaining the Computer Equipment in good operating condition.
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- **LIABILITY
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 FDD, Aunt Millies Bakeries requires its distributors to carry "all risk" insurance on the computer equipment provided to them. The minimum amount of this insurance must be $5,000.
Aunt Millies Bakeries also requires that the company (and any of its affiliates requested in writing) be included and named as an additional insured and/or loss payee on the policy. The distributor must provide Aunt Millies Bakeries with a copy of the insurance certificate within 30 days of the agreement's effective date.
This requirement ensures that Aunt Millies Bakeries is protected against potential loss or damage to the computer equipment used by the distributor. The distributor bears the expense of this insurance, which is a standard practice in franchising where the franchisee is responsible for insuring assets used in their business operations. Failing to maintain this insurance would constitute a breach of the distribution agreement.