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What was the reported value of the inventory reserve for Aunt Millies Bakeries in 2022?

Q: What was the reported value of the inventory reserve for Aunt Millies Bakeries in 2022?

fferor on the terms of the Offer. - **§7.2 SALE OF STOCK**: The transfer of a controlling interest in Distributor shall be deemed a transfer of the Distribution Rights and shall be subject to all of the terms and conditions of this Article 7. - **§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 (includin Source: Item 23 — RECEIPT (FDD pages 44–196)

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

fferor on the terms of the Offer.

§7.2 SALE OF STOCK: The transfer of a controlling interest in Distributor shall be deemed a transfer of the Distribution Rights and shall be subject to all of the terms and conditions of this Article 7.
§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 (includin

Source: Item 23 — RECEIPT (FDD pages 44–196)

What This Means (2025 FDD)

I am unable to provide a specific inventory reserve value for Aunt Millies Bakeries in 2022, as the provided excerpts from the 2025 Franchise Disclosure Document do not contain this information. However, the FDD does discuss a 'reasonable reserve against open accounts' in the context of the sale of distribution rights. This suggests that a reserve is maintained to cover potential outstanding payments from distributors.

Specifically, the FDD states that when distribution rights are sold, the proceeds from the sale are used to cover any monies owed to Aunt Millie's, a reasonable reserve against open accounts, costs associated with the sale (including removing damaged products), and any outstanding debts or legal fees. The remaining balance is then turned over to the distributor. This clause indicates that Aunt Millies Bakeries does consider potential financial liabilities when a distributor leaves the system, ensuring that outstanding obligations are addressed.

To determine the exact inventory reserve value for 2022, a prospective franchisee should directly ask Aunt Millies Bakeries for their financial statements or specific details on how inventory reserves are calculated and maintained. Understanding these reserves is crucial for assessing the financial health and stability of the franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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