Who is responsible for the maintenance of the equipment leased to Bimbo Foods Bakeries Distribution?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
egulations of any jurisdiction where it is used or located. 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.
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- Taxes. Lessee shall pay all personal property, sales or use taxes, business licenses, assessments, penalties, and charges, which may be levied or asserted in respect to Equipment (except income taxes levied on lease payments to Lessor). In the event that any such unpaid taxes, licenses, assessments, penalties, or charges are paid by Lessor (at Lessor's sole discretion), Lessee shall reimburse and pay Lessor, immediately after Lessor notifies Lessee in writing of any such payment, the total of any such payment plus an administrative charge of $100. Any unpaid balance shall be subject to an interest assessment of 12.5% per annum.
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- Fines. Lessee shall pay any and all fines or charges of any and every kind or nature, which may be imposed or assessed in respect to the Equipment, and/or its use and operation by the Lessee.
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- Loss or Damage. Lessee shall bear the entire risk of loss, theft, destruction of or damage to Equipment from any cause whatsoever ("Loss or Damage"). No loss or damage shall relieve Lessee of any obligation under the Lease. In the eve
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 franchisee (Lessee) is responsible for the maintenance of leased equipment. The franchisee must pay for all maintenance to keep the equipment in good and efficient working order during the lease term. This includes supplying all fuel, lubricants, parts, supplies, maintenance, and services.
This means a prospective Bimbo Foods Bakeries Distribution franchisee will bear the costs associated with maintaining any leased equipment, such as vehicles. These costs can include routine maintenance (oil changes, tire rotations), repairs, and replacement of parts. The franchisee is also responsible for providing fuel and lubricants necessary for the equipment's operation.
The franchisee can make alterations or add attachments to the equipment after notifying the Lessor, provided these changes are removable and do not reduce the equipment's value. However, at the end of the lease, any alterations or attachments that are not removed become the property of the Lessor. This arrangement is fairly standard in equipment leasing agreements, as the lessee typically has day-to-day control and use of the equipment.
Additionally, the franchisee is responsible for all personal property, sales or use taxes, business licenses, assessments, penalties, and charges related to the equipment, except for income taxes levied on lease payments to the Lessor. They are also responsible for any fines or charges related to the equipment's use and operation. The franchisee also bears the risk of loss or damage to the equipment from any cause, and such loss or damage does not relieve the franchisee of their obligations under the lease.