Is Aunt Millies Bakeries allowed to pursue a representative action against a distributor?

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, both Aunt Millies Bakeries and its distributors are prohibited from pursuing representative actions against each other. Specifically, the FDD states that any proceedings to resolve disputes must be conducted on an individual basis. This means that neither Aunt Millies Bakeries nor a distributor can seek to have a dispute heard as a class action, representative action, collective action, or private attorney-general action.

This restriction has significant implications for prospective franchisees. It means that if a distributor has a dispute with Aunt Millies Bakeries, they must pursue the matter individually and cannot join forces with other distributors who may have similar grievances. This could potentially increase the cost and complexity of resolving disputes, as the distributor will be solely responsible for their legal expenses.

Furthermore, the 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 Aunt Millies Bakeries and the distributor, as well as all parties involved in any such arbitration or proceeding. This further reinforces the individual nature of dispute resolution within the Aunt Millies Bakeries franchise system.

This type of clause is relatively common in franchise agreements, as franchisors often seek to avoid the complexities and potential liabilities associated with class action lawsuits or other representative actions. Prospective franchisees should carefully consider this provision and understand its implications before investing in an Aunt Millies Bakeries franchise.