Will the Sales Area for my Aunt Millies Bakeries franchise contain existing outlets?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The Sales Area covered by your franchise is determined by us based on our need to ensure that our network of independent, franchised Distributors sufficiently covers Outlets in the Sales Area. All Sales Areas will contain existing Outlets that may have previously been serviced by us, and which will become your customers. Factors we consider in determining whether a Sales Area meets our approval are: (a) it contains a sufficient number of Outlets that generate a level of sales needed by the Distributor; and (b) its geographic size is not so large as to make it impossible for the Distributor to physically deliver the Products to all the Outlets within the Sales Area.
We designate the Sales Area and identify it in the Distribution Agreement offered to you. If you and we do not agree on a Sales Area, you will not enter into a Distribution Agreement with us.
Source: Item 11 — FRANCHISOR'S OBLIGATIONS (FDD pages 25–27)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the Sales Area for your franchise will include existing outlets. The FDD specifies that all Sales Areas will contain existing Outlets that may have previously been serviced by Aunt Millies Bakeries. These outlets will become the franchisee's customers.
Aunt Millies Bakeries determines the Sales Area based on the need to ensure sufficient coverage of Outlets. The franchisor considers factors such as whether the Sales Area contains a sufficient number of Outlets that generate a level of sales needed by the Distributor and whether the geographic size is manageable for deliveries.
The Sales Area is designated and identified in the Distribution Agreement. The document states that if the franchisee and Aunt Millies Bakeries do not agree on a Sales Area, they will not enter into a Distribution Agreement. This indicates the importance of agreeing on a Sales Area that is mutually acceptable for the franchise to proceed.