Can a Bimbo Foods Bakeries Distribution franchisee paint the vehicles?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessee shall be responsible for the payment of any and all costs associated with the inspection, and for any and all repairs necessary to place the Vehicles in the same condition as when delivered, reasonable wear and tear excepted and otherwise in the condition required by this Lease.
PAINTING.
Lessee may paint the Vehicles in Lessee's customary manner and affix advertising or identifying insignia, provided that, upon the expiration or termination of this Lease, and in the event that Lessee does not
purchase the Vehicles pursuant to Section 4 hereof. Lessee shall, upon the request of Lessor and at Lessee's expense, restore the Vehicles to original condition, ordinary wear and tear excepted.
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, franchisees (referred to as 'Lessee' in the context of vehicle leases) are generally permitted to paint the vehicles they lease in their customary manner and to affix advertising or identifying insignia. However, this permission comes with a significant condition.
Specifically, if the franchisee does not purchase the vehicles at the end of the lease term, Bimbo Foods Bakeries Distribution can request that the franchisee restore the vehicles to their original condition at the franchisee's expense. This restoration must account for ordinary wear and tear, and the vehicles must be free of any decals or related markings that the franchisee added during the lease.
This clause has important financial implications for a prospective Bimbo Foods Bakeries Distribution franchisee. While the franchisee has the freedom to customize the vehicles with paint and advertising to promote their business, they must be prepared to cover the costs of restoring the vehicles to their original condition if they choose not to purchase them at the end of the lease. These restoration costs could potentially be substantial, depending on the extent of the modifications made to the vehicles. Therefore, a franchisee should carefully consider the potential costs and benefits before deciding to paint or otherwise modify the leased vehicles.