What are Aunt Millies Bakeries' obligations regarding the hardware and software of the computerized system?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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Computer
The only computer you must have is the hand-held computer, software, and/or other devices described in Items 5, 6, 7 and 8. Its purpose is for ordering and billing. You will sign the Computer Equipment Use Agreement (Exhibit G) with us and agree to pay us the weekly use fee of $30 plus $5 per week for paper and ribbons. We may increase the weekly use fee, and there is no limit on how often or by how much we may increase it. That does not include sales/use taxes, estimated at $2 to $3 per week, which we charge you. Under that Agreement, we are obligated to furnish you the hardware and software, and to provide the maintenance, repairs, updates and upgrades to the computerized system, at no cost to you.
We will have independent access to the information generated and stored in your hand-held system. There are no contractual limits t
Source: Item 11 — FRANCHISOR'S OBLIGATIONS (FDD pages 25–27)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the company is obligated to furnish the hardware and software for the hand-held computer system used for ordering and billing. Additionally, Aunt Millies Bakeries is responsible for providing maintenance, repairs, updates, and upgrades to the computerized system at no additional cost to the franchisee. The franchisee is required to sign a Computer Equipment Use Agreement and pay a weekly use fee of $30, plus $5 per week for paper and ribbons, along with an estimated $2 to $3 per week for sales/use taxes. However, Aunt Millies Bakeries retains independent access to the information generated and stored in the franchisee's hand-held system without any contractual limits.
This arrangement means that while franchisees must use the specified computer system and pay the associated weekly fees, Aunt Millies Bakeries covers the costs of keeping the system operational and up-to-date. This could be beneficial for franchisees as they don't have to worry about unexpected repair or upgrade expenses. However, the franchisor's unrestricted access to the data generated by the system is a significant consideration.
Franchisees should be aware that Aunt Millies Bakeries may increase the weekly use fee for the computer system, and there is no limit on how often or by how much they may increase it. This lack of a cap on fee increases introduces a degree of financial uncertainty for franchisees. It is important for prospective franchisees to fully understand the terms of the Computer Equipment Use Agreement and consider the potential impact of future fee increases on their profitability.