How is the Lessee required to use the equipment leased from Bimbo Foods Bakeries Distribution?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessee shall use Equipment only in its business and in compliance with all laws, rules, and regulations of any jurisdiction where it is used or located.
Lessee shall pay for all maintenance of Equipment to keep it in good and efficient working order and condition during the term of the Lease.
This includes, but is not limited to, Lessee's supplying all fuel, lubricants, and other parts, supplies, maintenance and services.
After notice to Lessor, Lessee may, at its own expense, make alterations or add attachments, provided such alterations or attachments are removable and do not reduce the value of the Equipment.
At the Lease expiration or termination, all alterations or attachments affixed to the Equipment shall become property of Lessor if not removed.
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, if a franchisee (Lessee) leases equipment from the franchisor (Lessor), the franchisee is explicitly restricted in how they can use that equipment. The franchisee must use the equipment strictly within the scope of their Bimbo Foods Bakeries Distribution business.
Furthermore, the franchisee must adhere to all relevant laws, rules, and regulations of any jurisdiction where the equipment is used or located. This means complying with local, state, and federal laws regarding the operation of the equipment, including any safety or environmental regulations. The franchisee is also responsible for all maintenance of the equipment, ensuring it remains in good and efficient working order throughout the lease term. This includes supplying all necessary fuel, lubricants, parts, and services required for upkeep.
The franchisee has the option to make alterations or add attachments to the equipment, but only after providing notice to Bimbo Foods Bakeries Distribution. These modifications must be removable and cannot diminish the equipment's value. Upon the lease's expiration or termination, any alterations or attachments that have not been removed become the property of Bimbo Foods Bakeries Distribution. This clause protects the franchisor's asset value and ensures the equipment can be returned in acceptable condition.