What is the exception to the requirement for dispute resolution through mediation and arbitration for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
Any dispute between AUNT MILLIE'S and DISTRIBUTOR arising out of the relationship created by this Agreement shall be subject to the dispute resolution provisions set forth below. Provided however, AUNT MILLIE's reserves the right to bring an action for injunctive relief in the event DISTRIBUTOR is in default of its obligation to pay AUNT MILLIE's or any of its Affiliates, and/or is in violation of Sections 6 or 10.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, while disputes between Aunt Millie's and a distributor arising from their agreement typically require mediation and arbitration, there is an exception. Aunt Millie's retains the right to initiate a court action for injunctive relief under specific circumstances, bypassing the standard dispute resolution process.
This exception applies if the distributor defaults on their payment obligations to Aunt Millie's or its affiliates. It also applies if the distributor violates Sections 6 or 10 of the agreement, which likely cover critical aspects of the franchise operation. Injunctive relief typically involves a court order compelling the distributor to either perform a specific action or cease a prohibited action.
For a prospective franchisee, this means that while most disputes will go through mediation and arbitration, Aunt Millie's can quickly seek a court order to address issues like non-payment or violations of key operational sections of the agreement. This clause protects Aunt Millie's interests by allowing them to swiftly address serious breaches without being delayed by the mediation and arbitration process. Franchisees should carefully review Sections 6 and 10 of the agreement to understand what actions could trigger this exception.