Who is considered the owner of the equipment for the purposes of the Bimbo Foods Bakeries Distribution vehicle lease?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessor is owner and shall at all times retain title to Equipment.
Lessee, at its expense, shall protect and defend Lessor's title and keep it free of all claims and liens except those of Lessee hereunder and claims and liens crested by or arising through Lessor.
The Equipment shall remain personal property regardless of its attachment to realty, and Lessee agrees to take such action as necessary to prevent any third party from acquiring an interest in the Equipment as a result of its attachment to realty.
Lessor may inspect the property at any time without prior notice during regular business hours.
- **5.
Licenses**.
Lessee shall, at its expense, obtain all necessary licenses (including motor vehicle plates) and registration, required for the use and operation of Equipment.
All certificates of title or registration of Equipment shall name Lessor as owner.
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the lessor retains ownership of the equipment at all times during the lease term. Specifically, the FDD states that the Lessor is the owner and shall at all times retain title to the Equipment.
This means that while the franchisee (Lessee) has the right to use the equipment, they do not own it. The franchisee is responsible for protecting the lessor's title and preventing any third-party claims or liens against the equipment, except for those created by the lease itself. The equipment remains personal property, regardless of whether it's attached to real estate, and the franchisee must take steps to prevent third parties from acquiring an interest in it due to any attachment.
Bimbo Foods Bakeries Distribution's lessor also has the right to inspect the equipment at any time during regular business hours without prior notice. Furthermore, all certificates of title or registration of Equipment shall name Lessor as owner. This arrangement is typical in vehicle leases, where the leasing company retains ownership and the lessee has the right to use the vehicle for the duration of the lease term.