What does the maintenance obligation include for the equipment leased to Bimbo Foods Bakeries Distribution?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
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 leases equipment, they are responsible for maintaining it in good working order throughout the lease term. This obligation extends to supplying all necessary fuel, lubricants, parts, and services to keep the equipment operational.
This means that franchisees bear the financial burden of routine maintenance and any repairs needed for the leased equipment. This could include expenses like oil changes, tire replacements, and other general upkeep tasks. Franchisees must factor these ongoing maintenance costs into their operating budget.
However, franchisees have the option to make alterations or add attachments to the equipment at their own expense, provided these modifications are removable and do not decrease the equipment's value. Upon the lease's expiration or termination, any alterations or attachments that haven't been removed become the property of the Lessor.