Under what condition can Aunt Millies Bakeries terminate the Vehicle Advertising Agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millie's Bakeries can terminate the Vehicle Advertising Agreement if the lessor does not comply with the requirements of the agreement. Specifically, if Aunt Millie's Bakeries determines that the lessor is not complying with the agreement, they may withhold rental payments of $60 per week. If the lessor fails to take reasonable steps to comply after receiving notice from Aunt Millie's Bakeries, Aunt Millie's Bakeries can terminate the agreement with ten days' notice. Upon termination, the lessor must immediately make the vehicle available for the removal of advertising materials.
This clause protects Aunt Millie's Bakeries' brand image by ensuring that vehicles displaying their advertising are properly maintained. It also gives the company recourse if a lessor fails to meet the standards outlined in the agreement. The ten-day notice period allows the lessor an opportunity to rectify any issues before termination occurs.
For a prospective franchisee, this means that if they enter into a Vehicle Advertising Agreement with Aunt Millie's Bakeries, they must adhere to the conditions of the agreement, including maintaining the vehicle in a clean and neat condition and repainting the vehicle as reasonably required by Aunt Millie's Bakeries. Failure to do so could result in the termination of the agreement and the loss of rental payments.