What is the definition of 'Vehicles' in the Bimbo Foods Bakeries Distribution lease agreement?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Equipment described herein, together with all replacements, repairs and additions thereto (individually and collectively, the "Vehicles") on the terms and conditions set forth in this Lease.
Lessee agrees that Lessee leases the Vehicles "as-is", and confirms that as of the date of delivery of each Vehicle, such Vehicle is of the design and manufacture selected by Lessee, and as of such date, Lessee has unconditionally accepted such Vehicles in all respects.
Lessee further confirms that it has selected the Vehicles on the basis of its own judgment, and expressly disclaims reliance upon any statements, representations, or warranties made by Lessor, and Lessee acknowledges that Lessor is not the manufacturer of the Vehicles.
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 definition of "Vehicles" is provided within the context of a lease agreement between Bush Leasing Trust (Lessor) and the Lessee. The lease agreement states that the Lessor leases to the Lessee the equipment described within the lease, along with all replacements, repairs, and additions. Individually and collectively, these items are referred to as the "Vehicles" within the terms and conditions of the lease.
This definition is important for prospective Bimbo Foods Bakeries Distribution franchisees as it clarifies what is included under the term "Vehicles" in the lease agreement. It encompasses not only the primary vehicles but also any replacements, repairs, and additions made to them during the lease term. This ensures that all related components and modifications are covered under the lease terms, which can affect maintenance responsibilities and insurance requirements.
Furthermore, the lease stipulates that the Lessee leases the vehicles "as-is" and confirms that the vehicles' design and manufacture were selected by the Lessee. The Lessee also acknowledges that Bimbo Foods Bakeries Distribution is not the manufacturer of the vehicles and disclaims reliance on any statements, representations, or warranties made by the Lessor. This "as-is" condition places the onus on the franchisee to inspect and accept the vehicles in their current state, highlighting the importance of due diligence before signing the lease agreement.