Where will the arbitration be held for disputes involving Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §11.3 ARBITRATION: If the parties are unable to resolve the dispute through mediation, either party seeking relief shall file an arbitration demand within ten (10) days following the conclusion of the mediation process, which period shall constitute an agreed time limitation, and such demand shall be limited to the cause(s) of action within the scope of the mediation conducted in accordance of Section 11.2 above. Any dispute between the parties subject to this Article shall be decided by neutral, binding arbitration conducted in accordance with the Judicial Arbitration and Mediation Services, Inc. ("JAMS"). The arbitration shall be conducted by one arbitrator and shall be held in the county where the principal place of business of DISTRIBUTOR is then located. The arbitrator shall apply the substantive law specified in Section 12.8 of this Agreement, except that with respect to arbitration matters, the provisions of the Federal Arbitration Act shall be controlling. Judgment upon the award rendered by the arbitrator shall be final and binding and may be entered in any court having jurisdiction thereof.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, any disputes that proceed to arbitration will be held in the county where the principal place of business of the distributor (franchisee) is located. This means that if a dispute between Aunt Millies Bakeries and a distributor cannot be resolved through mediation, and arbitration is pursued, the arbitration proceedings will take place in the county where the distributor's primary business is situated.
This arrangement is fairly common in franchising, as it tends to be more convenient and cost-effective for the franchisee, who is typically a smaller business entity compared to the franchisor. Holding the arbitration in the franchisee's location can reduce travel expenses and logistical challenges for the franchisee during the dispute resolution process. It is important to note that the arbitrator will apply the substantive law specified in the agreement, but the Federal Arbitration Act will govern arbitration matters.
Prospective Aunt Millies Bakeries franchisees should be aware of this clause, as it dictates where they would need to participate in arbitration proceedings if a dispute arises. While mediation is the first step in dispute resolution, understanding the location of potential arbitration is crucial for planning and budgeting in case a more formal legal process becomes necessary. Franchisees should also consider the implications of the Federal Arbitration Act governing the arbitration process, as this may affect their rights and obligations during arbitration.