factual

Are there any conditions mentioned in this section of the Aunt Millies Bakeries FDD?

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

  • §9.3 CURABLE BREACH: A breach of this Agreement or a breach of any agreement with any Affiliate of AUNT MILLIE's, other than a breach under Section 9.2, AUNT MILLIE'S shall give DISTRIBUTOR three (3) business days written notice within which DISTRIBUTOR may cure the breach. "Affiliate" of AUNT MILLIE's shall include any company which has common ownership with AUNT MILLIE's and which provides goods and services, including financing services, to DISTRIBUTOR. If DISTRIBUTOR fails to cure such breach within said three (3) business day period, AUNT MILLIE'S may thereafter terminate this Agreement and DISTRIBUTOR shall have no further right to cure; provided, further, that the parties agree that repeated violations constitute a chronic breach and threaten significant harm to AUNT MILLIE'S, its trademarks or commercial reputation, and in such event AUNT MILLIE'S shall be entitled to terminate this Agreement pursuant to Section 9.2 and DISTRIBUTOR shall have no further right to cure.

In consideration of the mutual promises contained herein the parties agree as follows:

  1. DELIVERY VEHICLE ADVERTISING AGREEMENT: LESSOR agrees to rent to AUNT MILLIE'S for the limited purposes of advertising AUNT MILLIE'S Products, the outside painted surfaces of the primary delivery vehicle utilized by LESSOR in the operation of its business. AUNT MILLIE'S agrees, in consideration of this rental, to provide and pay for the cost of applying advertising decals or materials to said vehicle, and to further pay as and for a space rental fee, the sum of $60/week. In consideration of such rental payments, LESSOR agrees to maintain said vehicle in a clean and neat condition, consistent with the best possible image for AUNT MILLIE'S in the marketplace, to repaint the vehicle from time to time as AUNT MILLIE'S may reasonably require, and to make the vehicle available to AUNT MILLIE'S on reasonable notice and at reasonable times, for the purpose of enabling AUNT MILLIE'S to place or

amend its advertising materials on the vehicle. AUNT MILLIE'S shall be solely responsible for the content of any advertising material and shall bear all expenses incurred in connection with placing, amending and/or removing of such advertising materials in the advertising space. In the event AUNT MILLIE'S, in its sole judgment, determines that LESSOR is not complying with the requirements of this Article AUNT MILLIE's may withhold rental payments, and if LESSOR fails to take reasonable steps to comply after notice from AUNT MILLIE'S, AUNT MILLIE'S shall be entitled to terminate this Vehicle Advertising Agreement on ten (10) days notice to LESSOR, and LESSOR shall immediately make the vehicle available to AUNT MILLIE'S for the purpose of having the advertising materials removed.

    1. LIABILITY AND INSURANCE: DISTRIBUTOR, at its own expense, shall carry "all risk" insurance on the Computer Equipment in the minimum amount of $5,000 and AUNT MILLIE'S (and any of its affiliates that may be requested in writing by AUNT MILLIE'S) shall be included and named as an additional insured and/or loss payee. DISTRIBUTOR shall provide AUNT MILLIE'S a copy of such insurance certificate within thirty (30) days of the effective date of this Agreement.
    1. DISTRIBUTOR'S DUTIES: DISTRIBUTOR shall be responsible to exercise due and reasonable care in the use and possession of the Computer Equipment
    1. RETURN: Upon the termination of this Agreement by either party, the Computer sEquipment, at the expense of DISTRIBUTOR, shall be returned to the place of business of AUNT MILLIE'S in good condition, reasonable wear and tear excepted.

Source: Item 23 — RECEIPT (FDD pages 44–196)

What This Means (2025 FDD)

According to the 2025 Aunt Millies Bakeries FDD, several conditions are outlined within the agreement. The agreement details conditions regarding termination, breach cures, and obligations of both Aunt Millies Bakeries and the distributor.

Aunt Millies Bakeries can terminate the agreement immediately if the distributor's actions significantly harm the company's trademarks or commercial reputation, without the distributor having a right to cure the breach. For other breaches, Aunt Millies Bakeries must provide a three-day written notice for the distributor to correct the issue. Repeated violations can be considered a chronic breach, leading to immediate termination without cure rights.

The distributor is obligated to maintain their delivery vehicle in a clean condition and allow Aunt Millies Bakeries to place advertising on it. Failure to comply with these advertising requirements allows Aunt Millies Bakeries to withhold rental payments and potentially terminate the vehicle advertising agreement. Additionally, the distributor is required to carry 'all risk' insurance on the computer equipment provided by Aunt Millies Bakeries, with a minimum coverage of $5,000, naming Aunt Millies Bakeries as an additional insured party. The distributor is also responsible for using due care with the computer equipment and returning it in good condition upon termination of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.