Does Aunt Millies Bakeries negotiate purchase arrangements with suppliers for the benefit of Distributors?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to enable DISTRIBUTOR to pursue business opportunities with Chains, which may require standard terms for all its outlets, AUNT MILLIE'S agrees to assist DISTRIBUTOR to from time to time arrange Chain account programs, promotions, delivery authorizations and purchasing and billing
terms for the sale of Products to Outlets of a Chain within DISTRIBUTOR's Sales Area. Nothing herein shall be deemed to authorize AUNT MILLIE'S as DISTRIBUTOR's agent or to create an agency relationship. DISTRIBUTOR is not obligated to accept or continue use of AUNT MILLIE'S assistance and may at any time make its own arrangements for terms and prices to its Outlets. Nothing herein shall require either party to pay slotting allowances or other similar fees or charges imposed by the Chains.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD page 18)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millie's Bakeries will assist distributors in arranging chain account programs. Specifically, Aunt Millie's Bakeries agrees to assist the distributor from time to time to arrange chain account programs, promotions, delivery authorizations, and purchasing and billing terms for the sale of products to outlets of a chain within the distributor's sales area. However, this does not authorize Aunt Millie's Bakeries to act as the distributor's agent, nor does it create an agency relationship.
The distributor is not obligated to accept or continue using Aunt Millie's Bakeries' assistance and may at any time make its own arrangements for terms and prices to its outlets. Neither party is required to pay slotting allowances or other similar fees or charges imposed by the chains.
This arrangement benefits the Aunt Millies Bakeries distributor by providing support in negotiating with larger chain accounts, which may require standardized terms. However, the distributor retains the flexibility to negotiate independently if they choose. This could be particularly useful for new franchisees who may lack experience in dealing with large accounts. The distributor is ultimately responsible for the terms they agree to with their outlets.