How are 'Outlets' defined in the Aunt Millies Bakeries distributor agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The following definitions shall apply for the purposes of this Distribution Agreement:
OUTLETS: As referred to in §1.2, Outlets shall mean all retail stores and all restaurant and institutional accounts which purchase Products by Direct Store Delivery. Outlets shall not be deemed to include, street vendors or any Outlets or parts thereof, including concessions and vending machines therein, serviced by methods other than Direct Store Delivery, or bakery thrift stores established or operated by, or contracted with AUNT MILLIE'S or its affiliates for the primary purpose of selling damaged, stale, off code products, although such bakery thrift stores may also sell any products, fresh or otherwise, which AUNT MILLIE'S or its affiliates, in their sole discretion, deem appropriate to support that purpose.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the term 'Outlets' is specifically defined within the context of the distributor agreement. Outlets are defined as all retail stores, restaurants, and institutional accounts that purchase products through Direct Store Delivery. This means that the definition hinges on the method of delivery; if a location receives products directly from the store distributor, it qualifies as an outlet.
However, the definition explicitly excludes certain types of locations. Street vendors are not considered outlets, nor are any outlets or parts of outlets serviced by methods other than Direct Store Delivery. This exclusion extends to concessions and vending machines that don't receive products via direct store delivery. Additionally, bakery thrift stores operated by Aunt Millies Bakeries or its affiliates, primarily for selling damaged, stale, or off-code products, are also excluded from the definition of 'Outlets,' even if they sell fresh products.
This definition is crucial for Aunt Millies Bakeries franchisees because it determines the scope of their distribution rights and responsibilities. Franchisees are granted the right to sell and distribute products to specific outlets within their sales area using Direct Store Delivery. Understanding precisely what constitutes an 'Outlet' ensures that franchisees focus their efforts on the correct types of locations and delivery methods, as defined in their agreement with Aunt Millies Bakeries.