How must a Bimbo Foods Bakeries Distribution lessee use the vehicles leased from the lessor?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
- USE OF VEHICLES; LESSEE'S REPRESENTATIONS. Lessee shall use the Vehicles only in its business and in compliance with all laws, rules, and regulations of any jurisdiction where the Vehicles are used or located. Lessee represents and warrants to Lessor at all times that (i) Lessee is duly organized, validly existing and in good standing under the laws of the state of its formation; (ii) Lessee has the right and ability to enter into this Lease and perform all of its obligations under the Lease; (iii) this Lease constitutes a valid, legal, and binding obligation and agreement of Lessee, enforceable against Lessee in accordance with its terms; and (iv) that the entering into and performance of this Lease by Lessee will not result in a breach, violation, or default under any judgment, order, law, regulation, loan, mortgage, agreement, indenture, or other instrument applicable to Lessee, or result in any breach of, or constitute a default under, or result in the creation of any lien, charge, security interest, or other encumbrance upon the Vehicles pursuant to any instrument to which Lessee is a party or by which it is bound; (v) there are no pending or overtly threatened actions or proceedings, which either, individually, or in the aggregate, would materially adversely affect the financial condition of Lessee or Lessee's ability to perform all of its obligations under the Lease and (vi) Lessee's exact legal name (if Lessee is an individual, the Lessee's legal name is the name exactly as it appears on the Lessee's most recent, unexpired driver's license issued by the state of his/her principal residence) is identified on the first page of the Lease. Lessee shall (i) use and operate the Vehicles in a careful and prudent manner for the purposes and in the manner intended to be used; (ii) shall keep the Vehicles properly housed or otherwise protected from damage; and (iii) shall pay for all maintenance of Vehicles to keep them in good and efficient working order and condition in
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 lessee must use the vehicles only for business purposes and in compliance with all laws and regulations of the jurisdiction where the vehicles are used or located. The lessee also confirms that they are in good standing under the laws of their state.
Furthermore, the lessee must operate the vehicles in a careful and prudent manner, for the intended purposes. They are also responsible for keeping the vehicles properly housed or protected from damage.
The lessee is responsible for paying for all vehicle maintenance to keep them in good working order during the lease term. This includes supplying fuel, lubricants, parts, and services. Bimbo Foods Bakeries Distribution may request the lessee to enter into a service and maintenance agreement with the lessor or an affiliate, under terms provided by the lessor.