What is Aunt Millies Bakeries' obligation regarding filling the distributor's orders?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
OF PRODUCTS**
- §3.1 TITLE: All Products will be sold to DISTRIBUTOR absolutely, and title to and risk of loss of, the Products shall pass to DISTRIBUTOR upon delivery in accordance with §3.2 below.
- §3.2 DELIVERY: Except as otherwise provided herein, AUNT MILLIE'S agrees to sell and deliver to DISTRIBUTOR, and DISTRIBUTOR agrees to buy and accept, at such location as AUNT MILLIE'S may from time to time reasonably designate or approve, sufficient quantities of the Products to adequately and properly supply the Outlets in the Sales Area. AUNT MILLIE'S agrees to use commercially reasonable efforts to fill DISTRIBUTOR'S orders in a reasonable and timely fashion. In case of strike, shortage of materials, breakdown or other cause, AUNT MILLIE'S reserves the right to fill orders on such reasonable basis as circumstances then permit. AUNT MILLIE'S and DISTRIBUTOR recognize that cuts and pluses and, on rare occasions, cancellations of deliveries, in whole or in part, are an unavoidable aspect of fresh baked goods production. In the event of pluses, DISTRIBUTOR agrees to use best efforts to effect the sale of the additional product.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millie's Bakeries agrees to sell and deliver sufficient quantities of their products to adequately supply outlets within the sales area. Aunt Millie's Bakeries will use commercially reasonable efforts to fill the distributor's orders in a reasonable and timely fashion. However, Aunt Millie's Bakeries reserves the right to fill orders on such reasonable basis as circumstances then permit in case of a strike, shortage of materials, breakdown, or other cause.
Additionally, Aunt Millie's Bakeries and the distributor acknowledge that cuts and pluses, and on rare occasions, cancellations of deliveries, in whole or in part, are an unavoidable aspect of fresh baked goods production. In the event of pluses, the distributor agrees to use best efforts to effect the sale of the additional product.
It's important to note that Aunt Millie's Bakeries is not required to fill an order if the distributor is in default of any payment or other obligation to Aunt Millie's Bakeries. This means that a distributor's ability to receive product is contingent upon remaining in good financial standing with the company.