Who retains title to the equipment leased to Bimbo Foods Bakeries Distribution?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
Title and Inspection.
Lessor is owner and shall at all times retain title to Equipment.
Lessee, at its expense, shall protect and defend Lessor's title and keep it free of all claims and liens except those of Lessee hereunder and claims and liens crested by or arising through Lessor.
The Equipment shall remain personal property regardless of its attachment to realty, and Lessee agrees to take such action as necessary to prevent any third party from acquiring an interest in the Equipment as a result of its attachment to realty.
Lessor may inspect the property at any time without prior notice during regular business hours.
- **5.
Licenses**.
Lessee shall, at its expense, obtain all necessary licenses (including motor vehicle plates) and registration, required for the use and operation of Equipment.
All certificates of title or registration of Equipment shall name Lessor as owner.
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the lessor retains the title to the equipment leased to Bimbo Foods Bakeries Distribution franchisees. Specifically, the FDD states that the lessor is the owner and shall at all times retain title to the equipment.
As a Bimbo Foods Bakeries Distribution franchisee, you are responsible for protecting and defending the lessor's title to the equipment and keeping it free of all claims and liens, except for those created by the franchisee under the lease agreement or arising through the lessor. The equipment remains personal property regardless of its attachment to real estate, and the franchisee must take action to prevent any third party from acquiring an interest in the equipment due to its attachment to realty.
Bimbo Foods Bakeries Distribution allows the lessor to inspect the property at any time without prior notice during regular business hours. The franchisee is also responsible for obtaining all necessary licenses and registrations, including motor vehicle plates, required for the use and operation of the equipment, and all certificates of title or registration of the equipment must name the lessor as the owner.