What is the 'Rental Period' as defined in the Bimbo Foods Bakeries Distribution lease agreement?

According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the rental payment amount for each vehicle is considered the Basic Rent, as detailed in the Summary of Lease Terms. Basic Rent accrues starting from the Contract Date and is payable in U.S. dollars. Payments must be made in immediately available funds by the Lessee either in advance or arrears. The Rental Period, along with the total number of payments, is specified in the Summary of Lease Terms, with payments due on the first day of each Rental Period.

For a prospective Bimbo Foods Bakeries Distribution franchisee, this means understanding the Summary of Lease Terms is crucial to know when and how much they will be paying for the vehicle lease. The franchisee needs to be aware of the Contract Date, as this is when the Basic Rent starts accruing, and the first day of each Rental Period, as this is when payments are due. The terms 'in advance or arrears' indicates that the franchisee needs to clarify with Bimbo Foods Bakeries Distribution whether the first payment is due at the beginning or end of the rental period.

Furthermore, if the Contract Date does not fall on the first day of the month, the rental amount from the Contract Date until the Commencement Date will be calculated based on a daily rental rate. This daily rate is determined by dividing the Basic Rent by 7 days for One Week, 14 days for One Biweekly, or 30 days for One Month Rental Periods, as applicable. This prorated amount is then due on the Commencement Date. Franchisees should pay close attention to these details to avoid late fees or misunderstandings regarding their lease obligations with Bimbo Foods Bakeries Distribution.