Under the voluntary payment program in North America between suppliers and Bank of America, does Bimbo Foods Bakeries Distribution modify the original credit terms with suppliers?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- As of September 2019, the Company acts as guarantor in voluntary payment program in North America between the suppliers and Bank of America, under which the suppliers discount their invoices. As of December 31, 2024, 2023 and 2022, the balance of $1,924, $1,826 and $2,813, respectively, under this program is presented as part of trade payables. This program does not modify the original credit terms with supp
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 voluntary payment program in North America between the company's suppliers and Bank of America does not modify the original credit terms with its suppliers.
As of December 31, 2024, 2023 and 2022, the balance under this program is presented as part of trade payables and totaled $1,924, $1,826 and $2,813, respectively.
This means that while Bimbo Foods Bakeries Distribution facilitates a program where suppliers can discount their invoices through Bank of America, the initial agreement between Bimbo Foods Bakeries Distribution and its suppliers regarding payment timelines and conditions remains unchanged. This arrangement may benefit suppliers by providing them with quicker access to funds, while Bimbo Foods Bakeries Distribution continues to operate under the original terms.