How should the Aunt Millies Bakeries distributor identify themselves in dealings with third parties?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §2.3 INDEPENDENT CONTRACTORS: 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 relationship between Aunt Millies Bakeries and its distributors is that of independent contractors. As such, in all dealings with third parties, the distributor must identify themselves as an independent contractor.
This stipulation is crucial because it clarifies that the distributor is not an employee or agent of Aunt Millies Bakeries. This distinction affects liability, taxes, and other legal obligations. As an independent contractor, the distributor has the right to operate their business as they choose and bears all the risks and costs associated with running the business.
Furthermore, the agreement explicitly states that the distributor has no authority to retain anyone on behalf of Aunt Millies Bakeries and is not entitled to any employee benefits or compensation from Aunt Millies Bakeries. This reinforces the independent nature of the relationship and ensures that third parties are aware that the distributor is a separate entity from Aunt Millies Bakeries.