Is the distributor entitled to any employee benefits from 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's 2025 Franchise Disclosure Document, the relationship between Aunt Millies Bakeries and its distributors is that of independent contractors. As such, distributors are not entitled to any employee benefits or compensation that Aunt Millies Bakeries provides to its employees. The distributor operates their business independently and bears all associated risks and costs.
This independent contractor status means that distributors are responsible for managing their own business operations, including hiring and managing their own personnel. They have the autonomy to make business decisions as they see fit, without direct control from Aunt Millies Bakeries. However, they must also bear the financial risks and operational costs associated with running their distribution business.
For a prospective Aunt Millies Bakeries distributor, this clarifies that they will not receive benefits such as health insurance, retirement plans, or paid time off from Aunt Millies Bakeries. Instead, they will need to secure these benefits independently. This also means the distributor is responsible for all applicable payroll-related taxes for any employees they engage.