Is the arbitrator's award in a dispute with Aunt Millies Bakeries final and binding?
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 dispute between the parties that is subject to Article 11 will be decided by neutral, binding arbitration. This arbitration will be conducted in accordance with the Judicial Arbitration and Mediation Services, Inc. ("JAMS").
The arbitration will be conducted by a single arbitrator and will take place in the county where the principal place of business of the distributor is located. The arbitrator is required to apply the substantive law as specified in Section 12.8 of the agreement, but the provisions of the Federal Arbitration Act will be controlling with respect to arbitration matters.
Importantly, the judgment upon the award rendered by the arbitrator will be final and binding. This judgment can then be entered in any court that has jurisdiction over the matter, meaning that the decision is enforceable through the court system. This clause ensures that the arbitration result is not merely advisory but carries the full weight of a legal decision.