Does Aunt Millies Bakeries assume liability for the acts or omissions of the distributor or its agents?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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- INDEMNITY: Neither AUNT MILLIE'S nor its affiliates assume any liability for any acts or omissions of DISTRIBUTOR or its agents. DISTRIBUTOR hereby releases AUNT MILLIE'S and its affiliates and agrees to indemnify AUNT MILLIE'S and its affiliates and hold them harmless for any and all claims against AUNT MILLIE'S or its affiliates of any kind or nature, arising out of or resulting from the use and/or operation of the Computer Equipment by DISTRIBUTOR.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, Aunt Millies Bakeries does not assume liability for any actions or failures to act by the distributor or their agents. The distributor is obligated to release Aunt Millies Bakeries and its affiliates from any claims arising from the use or operation of computer equipment provided to the distributor. This means that as a franchisee, you are responsible for the actions of yourself and anyone working on your behalf.
This arrangement protects Aunt Millies Bakeries from potential legal issues caused by the distributor's actions. The distributor also agrees to indemnify Aunt Millies Bakeries, meaning they will cover any costs or damages resulting from claims against Aunt Millies Bakeries due to the distributor's actions or omissions. This is a common practice in franchising, where franchisees are typically independent business owners responsible for their own operations and liabilities.
For a prospective Aunt Millies Bakeries distributor, this clause highlights the importance of operating the distribution business responsibly and ensuring that all agents or employees also act responsibly. It would be prudent to maintain adequate insurance coverage to protect against potential liabilities. Understanding this aspect of the agreement is crucial for managing risk and ensuring the long-term success of the franchise.