Who is responsible for the expense of obtaining and maintaining the required insurance coverage for an Aunt Millies Bakeries distributorship?
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 generally responsible for insurance costs, but there is a specific exception regarding computer equipment. The distributor must, at their own expense, obtain and maintain "all risk" insurance on the computer equipment provided by Aunt Millies Bakeries.
This insurance must be in a minimum amount of $5,000, and Aunt Millies Bakeries (and any of its affiliates requested in writing by Aunt Millies Bakeries) must be included as an additional insured and/or loss payee. 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 is protected against potential loss or damage to the computer equipment used by the distributor. The distributor's responsibility to cover this insurance is a standard practice to protect the franchisor's assets. Apart from this specific insurance on the computer equipment, the FDD does not specify other insurance requirements or who bears those costs, so a prospective franchisee should clarify with Aunt Millies Bakeries what other insurance coverage is required for the distributorship and who is responsible for the expense.