Does this section of the Aunt Millies Bakeries FDD require any specific actions?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
shall be deemed to require AUNT MILLIE'S to fill an order of DISTRIBUTOR during any time when DISTRIBUTOR is in default of any payment or other obligation to AUNT MILLIE'S.
ARTICLE 4 DISTRIBUTOR'S OBLIGATIONS
§4.1 RESULTS: DISTRIBUTOR agrees to use its best efforts to develop and maximize sales of Products to Outlets within the Sales Area, by maintaining an adequate and fresh supply of Products in all Outlets; rotating Products to promote their sale before
they become stale or off code; promptly removing all stale or off code Products; cooperating with AUNT MILLIE'S' marketing programs, maintaining a computer assisted record-keeping system compatible with the system maintained by AUNT MILLIE'S now or in the future; and providing service on a basis consistent with good industry practice to all Outlets in the Sales Area requesting service. Distributor is not required to service any Outlet that has proven consistently to be unprofitable, provided that where a Chain requires that such an Outlet be served as a condition for serving its other outlets, the profitability of any Outlet which is part of that Chain shall be judged on the basis of the profitability of the Chain as a whole. Nothing herein shall be deemed to prohibit DISTRIBUTOR from carrying and distributing merchandise for other companies or otherwise engaging in any other business activity, unless and except to the extent that such other merchandise is competitive with products distributed by AUNT MILLIE'S, or could contaminate the Products, or such other business activity is inconsistent with or interferes with the obligations of the DISTRIBUTOR hereunder.
- §4.2 COMPLIANCE: DISTRIBUTOR shall operate the business in compliance with all federal, state and local laws, rules and regulations.
- §4.3 PERFORMANCE BY DISTRIBUTOR: DISTRIBUTOR shall be free to engage such persons as DISTRIBUTOR deems appropriate to discharge or assist in discharging DISTRIBUTOR'S responsibilities hereunder. DISTRIBUTOR shall have the exclusive right to select, fix the compensation of, discharge and otherwise to manage, supervise and control all persons engaged by DISTRIBUTOR and shall, with respect to all such persons, perform all obligations and discharge all liabilities imposed upon DISTRIBUTOR under all government laws, rules or regulations ("Laws"), whether such Laws relate to labor, employment standards, worker's compensation, unemployment insurance, pay equity or any other governmental requirement; file all required tax information and reports and pay and/or withhold all
applicable payroll-related taxes with respect to any employees of DISTRIBUTOR. DISTRIBUTOR in all events shall be and remain responsible for insuring that all persons engaged by DISTRIBUTOR comply fully with all the terms and conditions of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries Franchise Disclosure Document, several sections outline specific actions and obligations for both the distributor (franchisee) and Aunt Millie's Bakeries.
The distributor has several obligations, including using their best efforts to develop and maximize sales of products to outlets within the sales area. This involves maintaining an adequate and fresh supply of products in all outlets, rotating products to ensure freshness, promptly removing stale or off-code products, cooperating with Aunt Millie's Bakeries' marketing programs, and maintaining a computer-assisted record-keeping system compatible with the one used by Aunt Millie's Bakeries. The distributor is also responsible for applicable payroll-related taxes for their employees and ensuring that all individuals they engage comply with the agreement terms.
Aunt Millie's Bakeries also has obligations, such as using its best efforts to deliver sufficient quantities of products to supply outlets in the sales area, assisting in the development of new outlets, pursuing the development of new products, preserving the quality and marketability of the products, and cooperating with the distributor's sales efforts. Aunt Millie's Bakeries will also assist the distributor in arranging chain account programs, promotions, delivery authorizations, and purchasing and billing terms for sales to chain outlets within the distributor's sales area.
Furthermore, the distributor grants Aunt Millie's Bakeries a continuing security interest in the distribution rights, assets, and receivables to secure any indebtedness. The distributor must also execute Aunt Millie's Bakeries' Security Agreement and financing statements to evidence this security interest. The FDD also specifies conditions under which Aunt Millies Bakeries can terminate the agreement if the distributor fails to meet their obligations, including breaches that involve criminal activity or threaten public health, safety, or Aunt Millie's Bakeries' trademarks or commercial reputation.