Does the Aunt Millies Bakeries distributor have the right to hire people to help with their responsibilities?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §4.3 PERFORMANCE BY DISTRIBUTOR: DISTRIBUTOR shall be free to engage such persons as DISTRIBUTOR deems appropriate to discharge or assist in discharging DISTRIBUTOR'S responsibilities hereunder. DISTRIBUTOR shall have the exclusive right to select, fix the compensation of, discharge and otherwise to manage, supervise and control all persons engaged by DISTRIBUTOR and shall, with respect to all such persons, perform all obligations and discharge all liabilities imposed upon DISTRIBUTOR under all government laws, rules or regulations ("Laws"), whether such Laws relate to labor, employment standards, worker's compensation, unemployment insurance, pay equity or any other governmental requirement; file all required tax information and reports and pay and/or withhold all applicable payroll-related taxes with respect to any employees of DISTRIBUTOR. DISTRIBUTOR in all events shall be and remain responsible for insuring that all persons engaged by DISTRIBUTOR comply fully with all the terms and conditions of this Agreement. Any breach of this Agreement by any person engaged by DISTRIBUTOR shall be deemed to be a breach by DISTRIBUTOR.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the distributor has the authority to hire individuals to assist in fulfilling their responsibilities. Specifically, the distributor has the autonomy to select, determine compensation for, manage, supervise, and, if necessary, discharge any individuals they engage to help with their duties.
This arrangement means that the Aunt Millies Bakeries distributor is responsible for handling all employment-related obligations, such as compliance with labor laws, employment standards, worker's compensation, unemployment insurance, and pay equity. The distributor is also required to manage all tax-related responsibilities, including filing necessary tax information, reports, and managing payroll taxes for their employees.
Furthermore, the distributor is accountable for ensuring that all individuals they hire comply with the terms and conditions outlined in the Distribution Agreement. Any violation of the agreement by the distributor's personnel is considered a breach of contract by the distributor themselves. This highlights the importance of careful hiring and thorough training to ensure all staff members understand and adhere to the agreement's stipulations.
This level of control and responsibility given to the distributor is fairly common in franchise systems, as it allows for flexibility in managing the day-to-day operations and tailoring the workforce to meet specific needs. However, it also places a significant burden on the distributor to handle all aspects of employment, making it crucial to have a solid understanding of employment laws and best practices.