Does Aunt Millies Bakeries require a Buy Back Agreement as part of its franchise agreements?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
ISCLOSURE DOCUMENT And Agreements with Franchisor**
FOR THE STATE OF ILLINOIS
Items 5, 7 and 17 of the Franchise Disclosure Document, and all Agreements between Distributor and Perfection Bakeries, Inc. ("PERFECTION BAKERIES"), Franchisor, including the Distribution Agreement, Advertising Agreement, Buy Back Agreement, Computer Equipment Lease Agreement, and Security Agreement (collectively "PERFECTION BAKERIES Agreements") attached as Exhibits C, E, F, G, and H to the Franchise Disclosure Document, are amended as follows:
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Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 FDD, Aunt Millies Bakeries utilizes a Buy Back Agreement as part of its franchise agreements. Specifically, the Buy Back Agreement is listed as one of the agreements amended by Exhibit M for franchisees in Illinois. This agreement is identified alongside other agreements such as the Distribution Agreement, Advertising Agreement, Computer Equipment Lease Agreement, and Security Agreement.
The inclusion of a Buy Back Agreement in the franchise documents suggests that under certain conditions, Aunt Millies Bakeries may repurchase certain assets or rights from the franchisee. This could include unsold inventory, equipment, or even the franchise rights themselves. The specifics of when and how this buyback would occur are detailed within the Buy Back Agreement, which is included as Exhibit F to the Franchise Disclosure Document.
For a prospective franchisee, it is crucial to carefully review the Buy Back Agreement (Exhibit F) to understand the circumstances under which Aunt Millies Bakeries might exercise its buyback rights. This includes understanding the valuation methods used to determine the buyback price, the conditions that trigger the buyback option, and any potential financial implications for the franchisee. Understanding these terms is essential for assessing the risks and opportunities associated with investing in an Aunt Millie's Bakeries franchise.