What are the Bimbo Foods Bakeries Distribution lessee's obligations regarding the maintenance and upkeep of the vehicles?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
or by which it is bound. 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 during the Term of the Lease, including, but is not limited to, Lessee's supplying all fuel, lubricants, and other parts, supplies, maintenance and services, and/or Lessee, upon Lessor's request, entering into a service and maintenance agreement with Lessor or an affiliate of Lessor upon such terms and conditions provided by Lessor. After notice to Lessor, Lessee may, at its own expense, make alterations or add attachments to the Vehicles, provided that such alterations or attachments are removable and do not reduce the value, utility or useful life of the Vehicles. Upon the expiration or termination of the Lease, all alterations or attachments affixed to the Vehicles shall become the property of Lessor if not removed, and if Lessee does remove such attachments, Lessee shall be liable to Lessor for any damage to the Vehicles as the result of such removal.
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to the 2025 FDD, a Bimbo Foods Bakeries Distribution lessee has several obligations regarding the maintenance and upkeep of vehicles leased from the lessor. The lessee must use and operate the vehicles in a careful and prudent manner, aligning with the intended purpose and usage guidelines. Additionally, the lessee is responsible for keeping the vehicles properly housed or protected to prevent damage.
Furthermore, the lessee is obligated to cover all maintenance costs necessary to keep the vehicles in good and efficient working order throughout the lease term. This includes supplying all required fuel, lubricants, parts, supplies, and services. Bimbo Foods Bakeries Distribution may also request that the lessee enter into a service and maintenance agreement with the lessor or an affiliate, under terms and conditions provided by the lessor.
Upon the lease's expiration or termination, if the lessee does not exercise any purchase option, the lessee must return the vehicle to a location designated by the lessor within the continental United States. The vehicle must be returned in the same condition as when it was delivered, accounting for reasonable wear and tear, and otherwise adhering to the lease requirements. Upon return, the lessor will conduct a physical and mechanical inspection of the vehicles to assess their condition.