Under what conditions will the agreement with Aunt Millies Bakeries automatically terminate?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4. TERM: LESSOR may terminate this Agreement on thirty (30) days written notice to AUNT MILLIE'S and, in any case, it shall automatically terminate on any termination of the Distribution Agreement previously entered into between the parties or the sale or transfer of the delivery vehicle or all of the Distribution Rights to which that Agreement applies.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the Delivery Vehicle Advertising Agreement between the lessor and Aunt Millie's will automatically terminate under specific conditions. The agreement automatically terminates if the Distribution Agreement previously entered into between the parties is terminated. Additionally, the agreement will automatically terminate upon the sale or transfer of the delivery vehicle or all of the Distribution Rights to which that agreement applies.
This means that if a franchisee's distribution agreement with Aunt Millies Bakeries ends for any reason, the advertising agreement tied to the delivery vehicle also ends automatically. Similarly, if the franchisee sells or transfers their delivery vehicle or all their distribution rights, the advertising agreement is immediately terminated.
This clause protects Aunt Millies Bakeries by ensuring that advertising on vehicles is directly linked to active distribution agreements and franchisees who are authorized to represent the brand. A prospective franchisee should understand these conditions, as any changes to their distribution agreement or business structure (such as selling the delivery vehicle) will impact all related agreements with Aunt Millies Bakeries.