Where will the arbitration be held when resolving a dispute with 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 a specific location. The arbitration will take place in the county where the principal place of business of the Aunt Millies Bakeries distributor is located. This means that if a dispute arises between Aunt Millie's and a distributor that cannot be resolved through mediation, the arbitration proceedings will occur in the county where the distributor's main business operations are based.
This arrangement is fairly common in franchising, as it aims to provide a more convenient and localized venue for the franchisee, who is typically the smaller party in the agreement. By holding the arbitration in the distributor's county, it reduces the travel and logistical burdens that the distributor would face if the arbitration were held at Aunt Millie's headquarters or another distant location. This can help to level the playing field and ensure that the distributor has a fair opportunity to present their case.
It is important for prospective Aunt Millies Bakeries distributors to understand this provision, as it dictates where they would need to participate in arbitration proceedings if a dispute arises. While mediation is the first step in resolving disputes, knowing the location of potential arbitration can help distributors prepare for the possibility of further legal action and understand the associated costs and logistical considerations.