Who receives the proceeds from the sale of Aunt Millies Bakeries Distribution Rights?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §7.3 PROCEEDS: Any sale shall be for the account of DISTRIBUTOR, and the proceeds of the sale, after deducting therefrom any monies owed by DISTRIBUTOR to AUNT MILLIE'S, a reasonable reserve against open accounts, all reasonable costs and expenses in connection with the sale (including without limitation the cost of removing any off code or damaged Products in DISTRIBUTOR'S Sales Area) and the satisfying of any outstanding debts, liens, security interests, legal fees and similar expenses, shall be turned over to DISTRIBUTOR.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the Distributor receives the proceeds from the sale of their distribution rights. However, this is after certain deductions are made.
The proceeds are first used to cover any monies the Distributor owes to Aunt Millies Bakeries. Additionally, a reasonable reserve is set aside for open accounts, and all reasonable costs and expenses associated with the sale are deducted. These expenses can include the cost of removing any off-code or damaged products from the Distributor's sales area.
Finally, the proceeds are used to satisfy any outstanding debts, liens, security interests, legal fees, and similar expenses. Only after all these deductions are accounted for, the remaining balance is then turned over to the Distributor.