factual

What is Aunt Millies Bakeries' right regarding the stale and damage repurchase policy?

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

AUNT MILLIE'S further agrees to repurchase at DISTRIBUTOR'S cost, and give full credit for, any damaged or off code Product which is not damaged or off code by reason of DISTRIBUTOR'S negligence, and which has been promptly returned to a reasonable location designated by AUNT MILLIE'S in accordance with AUNT MILLIE'S' then current stale and damage repurchase policy. AUNT MILLIE'S reserves the right to make reasonable amendments to such stale and damage repurchase policy from time to time.

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

What This Means (2025 FDD)

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millie's Bakeries agrees to repurchase damaged or off-code products from the distributor at the distributor's cost, provided that the damage or expiration was not due to the distributor's negligence. The distributor will receive full credit for these repurchased items. To qualify for repurchase, the products must be promptly returned to a location designated by Aunt Millie's Bakeries, following their current stale and damage repurchase policy.

Importantly, Aunt Millie's Bakeries retains the right to make reasonable amendments to its stale and damage repurchase policy from time to time. This means that the specifics of what constitutes an acceptable return, the locations for returns, and the procedures for claiming credit can change.

For a prospective franchisee, this indicates that while there is a policy in place to mitigate losses from damaged or expired products, the terms of this policy are subject to change. It would be prudent for a potential Aunt Millie's Bakeries distributor to thoroughly understand the current policy and to stay informed of any future amendments to effectively manage their inventory and minimize potential losses. It is also important to clarify what constitutes 'negligence' on the distributor's part, as this would affect the repurchase eligibility.

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.