Is a Bimbo Foods Bakeries Distribution franchisee's rights to the leased vehicles subject to any other interests?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Lessor may assign to a lender or any other assignee all or any part of Lessor's rights hereunder, including a security interest in the Vehicles and the right to receive rents and other sums due hereunder.
Upon notice of such assignment in writing by a lender, assignee and/or Lessor, Lessee shall pay all rents and other sums due or to become due under this Lease directly to such lender or assignee without set off, counterclaim, or any defense whatsoever.
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, a franchisee's rights to leased vehicles are subject to the rights and interests granted by the lessor (or its affiliates) to any assignee or lender of the lessor (or its affiliates). This means that while the franchisee (Lessee) leases the vehicles, their rights are subordinate to any financial interests the lessor may grant to third parties.
Bimbo Foods Bakeries Distribution's lessor can assign all or part of their rights under the lease to a lender or other assignee, including a security interest in the vehicles and the right to receive rents and other sums due. Upon written notice of such assignment from the lender, assignee, and/or lessor, the franchisee is obligated to pay all rents and other sums due under the lease directly to the lender or assignee. This payment must be made without any set-off, counterclaim, or defense whatsoever.
This clause protects the financial interests of the lessor and any parties to whom the lessor assigns rights, such as lenders. It ensures that the lease agreement remains enforceable even if the lessor's financial situation changes. For a prospective Bimbo Foods Bakeries Distribution franchisee, this means they must be prepared to redirect lease payments to a third party if notified by the lessor. The franchisee's rights to the vehicle are always secondary to the financial interests of the lessor and its assignees.