Who must elect arbitration for it to occur in a dispute with Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Distribution Agreement | Summary | |
|---|---|---|---|
| u. | Dispute resolution by arbitration or mediation | Article 11 | Disputes between you and Aunt Millie’s Bakeries shall be first subject to mediation, and if unable to resolve the dispute, it may be submitted to final and binding arbitration if timely elected by either party. |
- §11.3 ARBITRATION: If the parties are unable to resolve the dispute through mediation, either party seeking relief shall file an arbitration demand within ten (10) days following the conclusion of the mediation process, which period shall constitute an agreed time limitation, and such demand shall be limited to the cause(s) of action within the scope of the mediation conducted in accordance of Section 11.2 above. Any dispute between the parties subject to this Article shall be decided by neutral, binding arbitration conducted in accordance with the Judicial Arbitration and Mediation Services, Inc. ("JAMS"). The arbitration shall be conducted by one arbitrator and shall be held in the county where the principal place of business of DISTRIBUTOR is then located. The arbitrator shall apply the substantive law specified in Section 12.8 of this Agreement, except that with respect to arbitration matters, the provisions of the Federal Arbitration Act shall be controlling. Judgment upon the award rendered by the arbitrator shall be final and binding and may be entered in any court having jurisdiction thereof.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, either the distributor (franchisee) or Aunt Millie's Bakeries can elect to submit a dispute to binding arbitration. However, this can only occur if the parties are unable to resolve the dispute through mediation first.
Specifically, if mediation fails, the party seeking relief must file an arbitration demand within ten days following the conclusion of the mediation process. This ten-day period is considered an agreed time limitation. The demand must be limited to the issues that were part of the mediation.
This means that a franchisee considering arbitration with Aunt Millie's Bakeries needs to be prepared to act quickly after mediation, and should be aware that the scope of the arbitration will be limited to the issues already discussed during mediation. The arbitration will be conducted according to the rules of the Judicial Arbitration and Mediation Services, Inc. (JAMS) and will take place in the county where the franchisee's principal place of business is located.