What is the deadline for initiating a mediation procedure for a dispute with Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §11.2 MEDIATION: In the event of any dispute, either party shall initiate a mediation procedure within five (5) days of the date on which facts respecting the dispute first come to such party's attention, by submitting a written request for mediation to the Judicial Arbitration & Mediation Services, Inc. ("JAMS) according to its procedures, or any other mediation service mutually agreed to by the parties according to such mediator's procedures. The mediation process shall begin promptly and shall be concluded within ten (10) business days of the day the request for mediation is made, unless the parties mutually otherwise agree. Any and all discussions, negotiations, findings or other statements by the mediator and/or the parties made in connection with the mediation shall be privileged and confidential and shall not be admissible into evidence in any litigation. All mediation proceedings shall take place in the county where the principal place of business of DISTRIBUTOR is located. The expenses of the mediation service shall be borne equally by both parties, and all other expenses relating to such mediation shall be borne by the party incurring them. The commencement of any dispute resolution procedure shall not act to prevent AUNT MILLIE'S from taking any action in connection with DISTRIBUTOR's business, which may be the subject of the dispute, including the operation of DISTRIBUTOR'S route, except that AUNT MILLIE'S agrees that it will not sell, nor require
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, if a dispute arises between Aunt Millie's and a distributor, either party must initiate a mediation procedure within five days. This five-day period starts from the date when the facts of the dispute first come to the attention of the party initiating the mediation. The initiation involves submitting a written request for mediation to the Judicial Arbitration & Mediation Services, Inc. (JAMS) or another mutually agreed-upon mediation service, following their respective procedures.
This requirement means that a franchisee needs to act quickly upon discovering a dispute. Failing to initiate mediation within the specified five-day window could potentially waive their right to mediate the dispute, possibly leading to less favorable resolution methods like arbitration or litigation. It is crucial for franchisees to promptly document and assess any issues that could lead to a dispute to ensure they meet this strict deadline.
The mediation process itself is designed to be swift, with a conclusion expected within ten business days from the request date, unless both parties agree to extend the timeline. All discussions during mediation are confidential and cannot be used as evidence in later legal proceedings. The mediation will occur in the county where the distributor's principal place of business is located, and the expenses of the mediation service are split equally between Aunt Millie's and the distributor. Other related expenses are borne by the party incurring them.
It's important to note that initiating mediation does not prevent Aunt Millie's from taking actions related to the distributor's business, including the operation of the route. However, Aunt Millie's agrees not to sell or require the distributor to sell the Distribution Rights until the dispute resolution process is concluded or the time for either party to further proceed with dispute resolution has expired. This provides some protection to the distributor during the dispute resolution process.