Does this section of the Aunt Millies Bakeries FDD require any specific actions from the franchisor?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
for failures caused by Force Majeure; provided, however, that an event of Force Majeure shall not excuse DISTRIBUTOR from any obligations to pay for Products pursuant to Article 3.
ARTICLE 5 AUNT MILLIE'S OBLIGATIONS
- §5.1 DELIVERY AND COOPERATION: AUNT MILLIE'S shall use its best efforts to deliver to DISTRIBUTOR sufficient quantities of the Products to supply Outlets requesting service in the Sales Area, to assist in the development of new Outlets, to pursue the development of new Products, to preserve and develop the quality and marketability of the Products, and to assist and cooperate with DISTRIBUTOR'S sales efforts, except that AUNT MILLIE'S shall not be responsible for failures caused by Force Majeure.
- §5.2 SALES TO CHAINS: In order to enable DISTRIBUTOR to pursue business opportunities with Chains, which may require standard terms for all its outlets, AUNT MILLIE'S agrees to assist DISTRIBUTOR to from time to time arrange Chain account programs, promotions, delivery authorizations and purchasing and billing
terms for the sale of Products to Outlets of a Chain within DISTRIBUTOR's Sales Area. Nothing herein shall be deemed to authorize AUNT MILLIE'S as DISTRIBUTOR's agent or to create an agency relationship. DISTRIBUTOR is not obligated to accept or continue use of AUNT MILLIE'S assistance and may at any time make its own arrangements for terms and prices to its Outlets. Nothing herein shall require either party to pay slotting allowances or other similar fees or charges imposed by the Chains.
ARTICLE 6 CONFIDENTIALITY
§6.1 CONFIDENTIAL INFORMATION. As a result of this Agreement, DISTRIBUTOR may have access to or obtain certain information not available to the general public regarding AUNT MILLIE'S business ("Confidential Information"). DISTRIBUTOR acknowledges that the Confidential Information constitutes valuable trade secrets to AUNT MILLIE'S and DISTRIBUTOR agrees that it shall use AUNT MILLIE'S Confidential Information solely in accordance with the provisions of this Agreement and it will not disclose, or permit the disclosure of same, directly or indirectly, to any third party without AUNT MILLIE'S prior written consent. DISTRIBUTOR agrees to exercise due care in protecting the Confidential Information from unauthorized use and disclosure.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Article 5 outlines specific obligations for Aunt Millies Bakeries. Aunt Millies Bakeries is required to use its best efforts to deliver sufficient quantities of products to supply outlets requesting service in the Sales Area. They must also assist in the development of new outlets, pursue the development of new products, preserve and develop the quality and marketability of the products, and assist and cooperate with the distributor's sales efforts. However, Aunt Millies Bakeries is not responsible for failures caused by Force Majeure.
To support the distributor's business opportunities with Chains, Aunt Millies Bakeries agrees to assist the distributor in arranging Chain account programs, promotions, delivery authorizations, and purchasing and billing terms for the sale of products to outlets of a Chain within the distributor's Sales Area. This assistance does not create an agency relationship, and the distributor is not obligated to accept or continue using Aunt Millies Bakeries' assistance, allowing them to make their own arrangements for terms and prices to its Outlets. Neither party is required to pay slotting allowances or other similar fees charged by the Chains.
Additionally, if an Outlet decides to switch from Direct Store Delivery to another method, Aunt Millies Bakeries is permitted to sell products directly to that Outlet without violating the distributor's rights, and the distributor will not receive any proceeds from such sales. However, the distributor retains the Distribution Rights associated with that Outlet, meaning if the Outlet wants to reinstate merchandising of products through Aunt Millies Bakeries, the distributor has the exclusive right to provide those services on Aunt Millies Bakeries' behalf.