When does the sale and purchase of receivables between Aunt Millies Bakeries and the distributor terminate?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The foregoing sale and purchase shall continue until termination of this Distribution Agreement, or until DISTRIBUTOR gives written notice of the termination of the foregoing sale to AUNT MILLIE'S, or, with respect to specific Accounts only, AUNT MILLIE'S gives notice that such Account's Chain's or Outlet's credit has not been approved by AUNT MILLIE'S.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the sale and purchase of receivables between Aunt Millie's Bakeries and the distributor will terminate under three specific conditions. First, it ends upon the termination of the Distribution Agreement itself. Second, the distributor can terminate the sale by providing written notice to Aunt Millie's Bakeries. Finally, Aunt Millie's Bakeries can terminate the purchase of specific accounts by giving notice that a particular Chain's or Outlet's credit has not been approved by Aunt Millie's Bakeries.
This section outlines the circumstances under which the agreement for Aunt Millie's Bakeries to purchase the distributor's receivables will end. This is important for a prospective franchisee to understand because it defines the conditions under which the distributor will no longer be able to sell their accounts receivable to Aunt Millie's Bakeries. This could impact the distributor's cash flow and financial planning.
It is important for a prospective franchisee to fully understand these termination conditions and how they might affect their business operations and financial stability. Understanding the circumstances that could lead to the termination of this agreement allows the franchisee to prepare for potential changes in their business relationship with Aunt Millie's Bakeries.