Under what conditions can Roush terminate the Roush License Agreement with Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
In our License Agreement ("Roush License Agreement") dated December 10, 1975 with Roush Bakery Products, Inc. ("Roush"), we have the exclusive right to manufacture and sell Hillbilly Bread in certain areas of Indiana and Ohio ("Our Roush Territory"). If your Sales Area is within Our Roush Territory, you may distribute Hillbilly Bread products as well as Aunt Millie's and Koepplinger's products. The term of the Roush License Agreement is for an indefinite period of time, although we may cancel it by giving 120 days written notice. Roush may terminate the Roush License Agreement upon 10 days' notice for cause, including: our failure to follow Roush's recipes, our failure to maintain at least 40 grocery routes for the distribution of Hillbilly Bread, our failure to sell an average of at least 100 units of Hillbilly bread per route per week over a 30 day period, our discontinuing the manufacture and/or sale of the Hillbilly products for a period of 30 or more days, or in the event of our insolvency, assignment for the benefit of creditors, or the filing of a bankruptcy petition.
Source: Item 13 — TRADEMARKS (FDD pages 29–30)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the Roush License Agreement, dated December 10, 1975, grants Aunt Millies Bakeries the exclusive right to manufacture and sell Hillbilly Bread in specific areas within Indiana and Ohio. This agreement, however, can be terminated by Roush Bakery Products, Inc. under certain conditions.
Roush can terminate the agreement with only 10 days' notice if there is cause. Specific causes include Aunt Millies Bakeries failing to adhere to Roush's recipes for Hillbilly Bread, or if Aunt Millies Bakeries does not maintain at least 40 grocery routes for the distribution of Hillbilly Bread. Roush can also terminate the agreement if Aunt Millies Bakeries fails to sell an average of at least 100 units of Hillbilly bread per route per week over a 30-day period.
Additional causes for termination include Aunt Millies Bakeries discontinuing the manufacture and/or sale of Hillbilly products for 30 or more days, or in the event of Aunt Millies Bakeries's insolvency, assignment for the benefit of creditors, or the filing of a bankruptcy petition. These terms are important for a prospective franchisee to consider, especially if their sales area falls within the Roush Territory, as their ability to distribute Hillbilly Bread could be affected by Aunt Millies Bakeries's compliance with the Roush License Agreement.