What rights does the distributor acquire regarding the computer equipment from Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
USE AGREEMENT** ("Agreement") is made effective on _________, 20____, by and between PERFECTION BAKERIES, INC., d/b/a AUNT MILLIE'S, INC., a corporation with its principal office at 350 Pearl Street, Fort Wayne, Indiana 46802 (herein referred to as "AUNT MILLIE'S") and [DISTRIBUTOR'S NAME], residing at [DISTRIBUTOR'S ADDRESS], (herein referred to as "DISTRIBUTOR"). AUNT MILLIE'S and DISTRIBUTOR agree as follows**:**
-
- COMPUTER EQUIPMENT: AUNT MILLIE'S, directly, or through its affiliates, agrees to provide to DISTRIBUTOR a Handheld computer and printer ("the Computer Equipment"). The Computer Equipment may be exchanged or replaced by AUNT MILLIE'S or its affiliates from time to time with similar or comparable equipment.
-
- FEE: DISTRIBUTOR shall pay to AUNT MILLIE'S or its affiliates, the sum of $30.00, plus sales and use tax, per week for the use of the Computer 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.
-
- USE: DISTRIBUTOR shall use the Computer Equipment exclusively in the operation and service of its distribution of AUNT MILLIE's products.
-
- MAINTENANCE: AUNT MILLIE'S or its affiliates shall bear the expense of maintaining the Computer Equipment in good operating condition.
-
- LIABILITY AND INSURANCE: DISTRIBUTOR, at its own expense, shall carry "all risk" insurance on the Computer Equipment in the minimum amount of $5,000 and AUNT MILLIE'S (and any of its affiliates that may be requested in writing by AUNT MILLIE'S) shall be included and named as an additional insured and/or loss payee. DISTRIBUTOR shall provide AUNT MILLIE'S a copy of such insurance certificate within thirty (30) days of the effective date of this Agreement.
-
- DISTRIBUTOR'S DUTIES: DISTRIBUTOR shall be responsible to exercise due and reasonable care in the use and possession of the Computer Equipment
-
- RETURN: Upon the termination of this Agreement by either party, the Computer sEquipment, at the expense of DISTRIBUTOR, shall be returned to the place of business of AUNT MILLIE'S in good condition, reasonable wear and tear excepted.
-
- INDEMNITY: Neither AUNT MILLIE'S nor its affiliates assume any liability for any acts or omissions of DISTRIBUTOR or its agents. DISTRIBUTOR hereby releases AUNT MILLIE'S and its
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the distributor does not acquire ownership of the computer equipment. Instead, Aunt Millies Bakeries provides the distributor with a handheld computer and printer for use in their operations. This equipment may be exchanged or replaced by Aunt Millies Bakeries or its affiliates with similar equipment from time to time. The distributor only has the right to use the computer equipment according to the agreement's provisions.
The distributor is required to pay a fee of $30.00 per week, plus sales and use tax, for the use of the computer equipment, which is subject to change with 30 days' notice from Aunt Millies Bakeries. The distributor must use the equipment exclusively for distributing Aunt Millie's products and is responsible for exercising due care in its use and possession. The distributor is also obligated to carry "all risk" insurance on the computer equipment with a minimum coverage of $5,000, naming Aunt Millies Bakeries as an additional insured and/or loss payee.
Upon termination of the agreement, the distributor is responsible for returning the computer equipment to Aunt Millies Bakeries in good condition, with reasonable wear and tear excepted, at the distributor's own expense. The distributor is also responsible for indemnifying Aunt Millies Bakeries against any claims arising from the use or operation of the computer equipment. This arrangement is fairly typical in franchise systems where specific technology or equipment is essential for service delivery but the franchisor retains ownership and control.