What is the purpose of the personal interview of the Offeror's controlling shareholder by Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The Distribution Rights are owned by the DISTRIBUTOR and may be sold or otherwise transferred in whole or in part by DISTRIBUTOR, provided that any such sale or transfer shall be subject to: (a) the prior written approval of AUNT MILLIE'S, which approval will not be unreasonably withheld; and (b) a right of first refusal on the part of AUNT MILLIE'S at the same terms and conditions offered to DISTRIBUTOR (the "Offer") by a bona fide purchaser or transferee (the "Offeror"). The right of approval and right of refusal referred to herein shall expire unless DISTRIBUTOR is notified by AUNT MILLIE'S that it does not approve the Offeror or that it wishes to exercise its right of first refusal by notice given within ten (10) business days after the last to occur of the following:
- i. receipt by AUNT MILLIE'S of written notice of intent to sell or transfer to a named Offeror on terms and conditions fully set forth in such notice; and
- ii. a personal interview of the Offeror's controlling shareholder by a designated AUNT MILLIE'S representative; and
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, a personal interview of the Offeror's controlling shareholder by a designated Aunt Millie's Bakeries representative is a condition that must be met before a distributor can sell or transfer their distribution rights. This interview is one of the steps Aunt Millie's Bakeries takes to decide whether to approve the Offeror or exercise its right of first refusal.
Specifically, Aunt Millies Bakeries has ten business days to notify the distributor of their decision after the later of two events: receipt of written notice of intent to sell or transfer to a named Offeror, and the completion of the personal interview. This suggests that the interview is a key part of Aunt Millies Bakeries' evaluation process for potential transferees.
For a prospective Aunt Millies Bakeries franchisee, this means that if they plan to sell their distribution rights, the potential buyer's controlling shareholder will need to undergo a personal interview with Aunt Millies Bakeries. The outcome of this interview could influence whether Aunt Millies Bakeries approves the transfer or decides to exercise its right of first refusal, potentially impacting the franchisee's ability to sell their rights to their preferred buyer.