Does the distributor have the authority to retain any person on behalf of Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties intend to create an independent contractor relationship and it is of the essence of this Agreement that DISTRIBUTOR be an independent contractor for all purposes and DISTRIBUTOR shall only identify himself as such in all third party dealings. Any contrary final determination by any board, tribunal or court of competent jurisdiction shall require the amendment of this Agreement in any way necessary to establish an independent contractor relationship. As an independent contractor, DISTRIBUTOR has the right to operate the business as DISTRIBUTOR chooses, and shall bear all risks and costs of operating such business. DISTRIBUTOR has no authority to retain any person on behalf of AUNT MILLIE'S. It is expressly understood that DISTRIBUTOR has no claim, or right under any circumstances, to any benefits or other compensation currently paid by AUNT MILLIE'S to employees, or hereafter declared by AUNT MILLIE'S for the benefit of employees. No fiduciary relationship exists between the parties.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the distributor operates as an independent contractor and does not have the authority to retain any person on behalf of Aunt Millies Bakeries. The agreement explicitly states that the distributor has the right to operate the business as they choose and bears all the risks and costs associated with it.
This independent contractor relationship means that the distributor is responsible for managing their own staff, including hiring, compensating, and supervising them. Aunt Millies Bakeries is not liable for any claims or benefits related to the distributor's employees. This arrangement is typical in franchise systems where franchisees operate independently and manage their own personnel.
Prospective Aunt Millies Bakeries distributors should understand that they are fully responsible for all employment-related obligations and liabilities. They must ensure compliance with all labor laws, tax requirements, and insurance regulations for their employees. This includes handling payroll, worker's compensation, and unemployment insurance. The distributor's agreement emphasizes that any failure to comply with these obligations is considered a breach of the agreement.