Which sections of the Aunt Millies Bakeries agreement apply to the sale of distribution rights after termination?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §9.4 ACTIONS FOLLOWING TERMINATION: Termination under either Section 9.2 or Section 9.3 above, shall entitle AUNT MILLIE'S to operate the business for the account of the DISTRIBUTOR, deducting from the revenues generated the reasonable expenses of such performance and delivering the balance, if any, to DISTRIBUTOR. Termination shall require DISTRIBUTOR to sell the Distribution Rights, and in the event that DISTRIBUTOR has not consummated a sale to a qualified purchaser within 90 days of the date of termination, AUNT MILLIE'S shall be authorized to sell DISTRIBUTOR'S Distribution Rights to such a purchaser at the best price which can be obtained after proper notice and advertisement. Said sale shall be for the account of the DISTRIBUTOR, and the provisions of Sections 7.3, 7.4 and 7.5 hereof shall apply.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Section 9.4 of the agreement outlines the procedures following termination, including the sale of distribution rights. Specifically, if a distributor fails to sell their distribution rights to a qualified purchaser within 90 days of termination, Aunt Millies Bakeries is authorized to sell those rights.
The sale of distribution rights by Aunt Millies Bakeries will be for the account of the distributor. The agreement specifies that Sections 7.3, 7.4, and 7.5 of the agreement will apply to this sale.
This means that prospective Aunt Millies Bakeries franchisees should familiarize themselves with these sections to understand their rights and obligations regarding the sale of distribution rights, particularly in the event of termination. Understanding these sections can help a franchisee prepare for different scenarios and protect their investment.