What is the condition of the vehicles leased to a Bimbo Foods Bakeries Distribution franchisee?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
R DEFECT IN THE VEHICLES. LESSEE AGREES THAT LESSEE LEASES THE VEHICLES "AS IS". Lessor agrees, to the extent possible and without increasing its liability hereunder, and upon request, to assign to Lessee, any warranty of a manufacturer or seller relating to the Vehicles available to Lessor, provided, however, that the foregoing rights shall automatically revert to Lessor upon the occurrence and during the continuance of any Event of Default hereunder, or upon return of the Vehicles to Lessor. Lessee agrees to settle all claims with respect to the Vehicles directly with the manufacturers thereof, and to give Lessor prompt notice of any such settlement and the details of such settlement.
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- TITLE AND INSPECTION. Lessee, at its expense, shall protect and defend Lessor's title and keep it free of all claims and liens except those claims and liens created by Lessor in connection with any assignment or financing by Lessor. Lessor may inspect the Vehicles at any time without prior notice during regular business hours. If, at any time during the Term of this Lease, Lessor supplies Lessee with labels, plates or other markings stating that the Vehicles are owned by Lessor, Lessee shall affix and keep the same in a prominent place on the Vehicles.
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- LICENSES. Lessee shall at its expense obtain all necessary licenses (including motor Vehicle plates) and registrations, required for the use and operation of each Vehicle. All certificates of title or registration of each Vehicle shall name Lessor as the owner thereof.
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- INTERESTS IN VEHICLES. Lessee's rights with respect to this Lease and any Vehicles leased hereunder will be subject to any rights and interest in and to said Vehicles which may be granted by Lessor (or Lessor's affiliates) to any assignee or lender of Lessor (or Lessor's affiliates).
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to the 2025 Bimbo Foods Bakeries Distribution FDD, the vehicles are leased "AS IS." Bimbo Foods Bakeries Distribution makes no warranties about the condition of the vehicles. The franchisee is responsible for maintaining the vehicle during the lease term and returning it in the same condition as when it was delivered, with reasonable wear and tear excepted.
Upon the lease's expiration or termination, Bimbo Foods Bakeries Distribution will inspect the vehicle. The franchisee is responsible for covering the costs of this inspection and any necessary repairs to restore the vehicle to its original condition, accounting for reasonable wear and tear.
Franchisees have the option to paint the vehicles and add advertising, but they must restore the vehicle to its original condition upon lease termination if they do not purchase it, removing any decals or markings. While Bimbo Foods Bakeries Distribution may assign any manufacturer warranties to the franchisee, this right reverts back to Bimbo Foods Bakeries Distribution if the franchisee defaults on the lease or returns the vehicle.