Under scan-based trading arrangements, where does Aunt Millies Bakeries carry inventory?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
If any Chain elects to settle with DISTRIBUTOR on the basis of scan results, rather than charge slips, the credit to DISTRIBUTOR shall be adjusted for any difference between the charge slip and the actual sales reflected by the scan sale data.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
Based on the 2025 Aunt Millies Bakeries Franchise Disclosure Document, the document outlines a system where Aunt Millie's purchases receivables from the distributor. Specifically, if a chain elects to settle payments based on scan results rather than charge slips, the distributor's credit is adjusted to reflect the actual sales data obtained from the scan. This indicates a scan-based trading arrangement is in place between Aunt Millie's, the distributor, and the chain outlets.
However, the FDD does not explicitly state where Aunt Millie's carries the inventory under scan-based trading arrangements. The document focuses more on the financial transactions and responsibilities related to product sales and delivery, such as the purchase of receivables and potential adjustments based on scan data.
Therefore, a prospective franchisee should directly ask Aunt Millie's about the specifics of inventory management under scan-based trading arrangements. Clarification should be sought regarding where the inventory is held (e.g., at the distributor's location, at the retail outlets, or elsewhere), how inventory levels are managed, and who is responsible for any losses or discrepancies.