Does this section of the Aunt Millies Bakeries FDD describe any dependencies?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
DISTRIBUTOR acknowledges that the limited rights to use any particular marks as granted under this Section 10.1 shall continue only so long and to the extent that AUNT MILLIE'S holds rights to those particular Marks. Any particular Mark or Marks in which AUNT MILLIE'S loses its rights, shall be referred to hereinafter as the Terminated Marks.
PRODUCTS: As referred to in §1.3, Products shall mean all fresh baked breads, rolls, muffins, cakes, cookies, pies, bread stuffings, packaged croutons and similar fresh baked products intended to be sold as fresh, and sold under the names and trademarks:
KOEPPLINGER RECIPE SOFT 'N GOOD,
AUNT MILLIE'S PERFECTION PASTRIES
- together with other names and trademarks AUNT MILLIE'S may add from time to time; AUNT MILLIE'S reserves the right to add or delete any Products or Tradenames at any time due to sales, marketing or availability issues.
- together with products purchased from time to time by AUNT MILLIE'S that are compatible with the trademarked products and sold in the Sales Area so long as AUNT MILLIE'S makes those products available;
- together with any similar products manufactured and distributed by AUNT MILLIE'S in non-trademarked wrappings or under private labels owned by third parties; provided that any such private label products shall be only purchased by Distributor and resold as approved and at prices established by the third-party owner of that label.
- together with similar fresh baked product sold under the trade names SUNBEAM AND HILL-BILLY, to the extent those Products are distributed in the Sales Area; except that these rights shall continue only for so long as AUNT MILLIE'S retains the franchise rights to these brand names.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, the distributor's rights to use certain trademarks are dependent on Aunt Millie's Bakeries maintaining its rights to those trademarks. Specifically, Section 10.1 states that the distributor's right to use any particular marks continues only as long as Aunt Millie's holds the rights to those marks. If Aunt Millie's loses its rights to a particular mark, it becomes a 'Terminated Mark,' implying the distributor can no longer use it. This creates a dependency for the distributor on Aunt Millie's Bakeries' continued ownership of these trademarks.
Additionally, the definition of 'Products' includes specific brand names like KOEPPLINGER RECIPE SOFT 'N GOOD and AUNT MILLIE'S PERFECTION PASTRIES, as well as SUNBEAM AND HILL-BILLY. However, the rights to distribute products under the SUNBEAM AND HILL-BILLY trade names are contingent upon Aunt Millie's retaining the franchise rights to these brand names. This means that if Aunt Millie's loses these franchise rights, the distributor would no longer be authorized to sell products under those brand names within their sales area. This represents another dependency for the distributor on Aunt Millie's Bakeries' franchise rights.
Furthermore, the agreement outlines that Aunt Millie's reserves the right to add or delete any Products or Tradenames at any time due to sales, marketing, or availability issues. This clause gives Aunt Millie's the power to change the product offerings, which could impact the distributor's business. The distributor's success is therefore dependent on Aunt Millie's decisions regarding product selection and branding. This dependency highlights a potential risk for the distributor, as changes in product offerings could affect their sales and profitability.