How are 'Outlets' specifically defined for an Aunt Millies Bakeries distributorship?
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.
PRODUCTS: As referred to in §1.3, Products shall mean all fresh baked breads, rolls, muffins, cakes, cookies, pies, bread stuffings, packaged croutons and similar fresh baked products intended to be sold as fresh, and sold under the names and trademarks:
KOEPPLINGER RECIPE SOFT 'N GOOD,
AUNT MILLIE'S PERFECTION PASTRIES
- together with other names and trademarks AUNT MILLIE'S may add from time to time; AUNT MILLIE'S reserves the right to add or delete any Products or Tradenames at any time due to sales, marketing or availability issues.
- together with products purchased from time to time by AUNT MILLIE'S that are compatible with the trademarked products and sold in the Sales Area so long as AUNT MILLIE'S makes those products available;
- together with any similar products manufactured and distributed by AUNT MILLIE'S in non-trademarked wrappings or under private labels owned by third parties; provided that any such private label products shall be only purchased by Distributor and resold as approved and at prices established by the third-party owner of that label.
- together with similar fresh baked product sold under the trade names SUNBEAM AND HILL-BILLY, to the extent those Products are distributed in the Sales Area; except that these rights shall continue only for so long as AUNT MILLIE'S retains the franchise rights to these brand names.
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' refers to retail stores, restaurants, and institutional accounts that purchase products through Direct Store Delivery. This means the distributor physically delivers and/or merchandises products ordered by the outlet to its place of business, where the outlet either sells merchandise (including Aunt Millies Bakeries' products) to the public or uses the products in food sold to customers. Merchandising includes managing inventory levels and removing stale products.
However, the definition of 'Outlets' specifically excludes street vendors and any outlets (or parts of outlets) such as concessions and vending machines that are serviced by methods other than Direct Store Delivery. Additionally, bakery thrift stores operated by or contracted with 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.
For a prospective Aunt Millies Bakeries distributor, this definition is crucial because it clarifies the types of locations they are authorized to serve and from which they can generate revenue. Understanding these distinctions helps the distributor focus on the appropriate customer base and delivery methods, as well as avoid investing time and resources in areas that are not part of their distribution rights. The distributor's rights to specific outlets are further detailed in Schedule B of the Distribution Agreement.