Does the Aunt Millies Bakeries agreement allow for collective actions?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §11.7 INDIVIDUAL ACTIONS. The parties agree that any proceedings to resolve or litigate any dispute in arbitration or in court, or otherwise will be conducted solely on an individual basis, and that neither DISTRIBUTOR nor AUNT MILLIIE'S will seek to have any dispute heard as a class action, a representative action, a collective action, a private attorney-general action or in any proceeding in which DISTRIBUTOR or AUNT MILLIE'S acts or proposes to act in a representative capacity. The parties agree that no arbitration or proceeding will be joined, consolidated or combined with another arbitration or proceeding without prior written consent of both DISTRIBU-TOR and AUNT MILLIE'S and all parties to any such arbitration or proceeding.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries Franchise Disclosure Document, the franchise agreement stipulates that any legal proceedings to resolve disputes must be conducted on an individual basis. This means a distributor cannot participate in class actions, representative actions, collective actions, or private attorney-general actions against Aunt Millies Bakeries.
This clause prevents franchisees from joining together to sue Aunt Millies Bakeries as a group. Each distributor must pursue their claims independently. This can be a disadvantage for franchisees, as it may be more expensive and time-consuming to litigate individually than as part of a larger group. It also prevents the pooling of resources and knowledge that can occur in collective actions.
Furthermore, the Aunt Millies Bakeries agreement specifies that no arbitration or proceeding can be joined, consolidated, or combined with another arbitration or proceeding without the prior written consent of both the distributor and Aunt Millies Bakeries, as well as all parties involved in any such arbitration or proceeding. This reinforces the individual nature of dispute resolution under the franchise agreement.
This type of clause is relatively common in franchise agreements. It is designed to protect the franchisor from large, coordinated legal actions that could be costly and disruptive. However, prospective franchisees should carefully consider the implications of this clause and whether it aligns with their risk tolerance and legal strategy.