Who is responsible for the expense of obtaining and maintaining insurance coverage for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
omputer Equipment. Such payment shall be charged to DISTRIBUTOR on a weekly basis. This fee is subject to change by AUNT MILLIE'S upon thirty (30) days' notice.
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- USE: DISTRIBUTOR shall use the Computer Equipment exclusively in the operation and service of its distribution of AUNT MILLIE's products.
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- MAINTENANCE: AUNT MILLIE'S or its affiliates shall bear the expense of maintaining the Computer Equipment in good operating condition.
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- **LIABILITY
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the distributor is responsible for the expense of obtaining and maintaining insurance coverage for the computer equipment. Specifically, the distributor must carry "all risk" insurance on the computer equipment in the minimum amount of $5,000.
Furthermore, Aunt Millies Bakeries (and any of its affiliates that may be requested in writing by Aunt Millies Bakeries) must be included and named as an additional insured and/or loss payee on the insurance policy. The distributor is required to provide Aunt Millies Bakeries with a copy of the insurance certificate within 30 days of the agreement's effective date.
This requirement ensures that Aunt Millies Bakeries has a degree of financial protection in case the computer equipment is damaged or lost while in the distributor's possession. It is a fairly standard practice in franchising for franchisees or distributors to maintain insurance coverage on equipment or assets that are essential to the business operation, especially when the franchisor retains ownership or has a vested interest in the equipment's value and functionality.