For Bimbo Foods Bakeries Distribution, how long is the term of the equipment lease?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
ation Fees S INCLUDED S INCLUDED
«Gap_In_or_Out»
TERMS AND CONDITIONS
Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the personal property described above upon the terms and conditions set forth herein (such property together with all replacements, repairs and additions thereto being referred to herein as "Equipment").
- 1. Term. The term of this Lease shall begin upon the date of delivery and shall continue for «TERM» consecutive months.
- 2. Rent. Rent in the following amount:
Lease payment Sales or Use tax Personal Property Tax Lessor's Insurance
shall be due and payable commencing on __________________________________
obligation is absolute and unconditional and without set off, counterclaim or any purposed whatsoever. The Lease payment amount is fixed and will not change during the term hereof. However, the Sales or Use tax charge and the Lessor's Insurance charge are subject to change up or down in the event that the taxing jurisdiction or insurance provider, as the case may be, should amend, change recalculate or otherwise adjust the amount of its charges. Lessee acknowledges that Lessor requires Lessee to execute an assignment of receivables and to authorize «COMPANY» to deduct from Lessee's weekly settlements, an amount sufficient to enable BIMBO FOODS BAKERIES DISTRIBUTION, LLC to forward payment of any amounts due hereunder to Lessor. Lessee acknowledges that any failure to execute such an assignment, or any attempted revocation of such an assignment shall constitute an Event of Default under this Lease.
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- Warranties.
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, the term of the equipment lease begins on the date of delivery and continues for a specified number of consecutive months, represented by "«TERM»". The exact duration of the lease term is not explicitly defined with a numerical value in this section of the FDD.
Prospective franchisees should note that the lease agreement requires them to make payments for lease, sales or use tax, personal property tax and lessor's insurance. These payments begin on a specified date and the lease payment amount is fixed for the term of the lease. However, the sales or use tax charge and the lessor's insurance charge are subject to change if the taxing jurisdiction or insurance provider amends or adjusts their charges.
It is important for potential Bimbo Foods Bakeries Distribution franchisees to clarify the exact length of the equipment lease term, the commencement date of lease payments, and the conditions under which the lease can be terminated. Understanding these details is crucial for budgeting and financial planning as a franchisee. Franchisees should also be aware of their obligations regarding taxes, insurance, and potential changes to these charges during the lease term.