What are 'Terminated Marks' in the context of the Aunt Millies Bakeries agreement?
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.
§10.2 QUALITY ASSURANCES. AUNT MILLIE'S or its authorized representatives, shall have access, upon reasonable notice and during regular business hours, to the DISTRIBUTOR'S facilities in order to inspect the Products bearing the Marks and take samples of any Products, packaging wrappers, boxes, or labels being used by distributor to distribute the Products. Any deficiencies in the quality of the Product or the packaging, labels or other materials used for or on the Products shall, at AUNT
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, 'Terminated Marks' refer to specific trademarks for which Aunt Millie's loses its rights. As a distributor, your right to use any particular mark is contingent upon Aunt Millie's maintaining its rights to those marks. If Aunt Millie's loses the rights to a specific mark, it becomes a 'Terminated Mark.'
This means that if Aunt Millie's loses the legal right to use a particular trademark, the distributor must immediately stop using it. The distributor also cannot use any similar trademarks or make any claims that they are still distributing products with those marks. This obligation is in place upon the termination of the agreement or the distributor's right to use any of the marks.
This provision protects Aunt Millie's Bakeries by ensuring that distributors do not continue to use trademarks that the company no longer has the right to use. For a prospective franchisee, this means staying informed about the current trademarks and being prepared to discontinue using certain marks if Aunt Millie's loses its rights to them. It is important to maintain open communication with Aunt Millie's to stay updated on any changes to the approved trademarks.