Must an Aunt Millies Bakeries franchisee comply with state laws concerning their relationship with employees?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 31)
What This Means (2025 FDD)
According to the 2025 Aunt Millies Bakeries FDD, franchisees are responsible for ensuring that all individuals they engage comply with the terms of their agreement with Aunt Millie's Bakeries. Specifically, the franchisee (referred to as "DISTRIBUTOR" in the quote) is responsible for applicable payroll-related taxes for any of their employees.
This means that as an Aunt Millie's Bakeries franchisee, you are considered an independent business owner and not an employee of Aunt Millie's Bakeries. You have the right to hire your own employees to help you operate the business. However, with that right comes the responsibility to comply with all local, state, and federal laws regarding employment, including proper withholding and payment of payroll taxes.
Failure to comply with these obligations constitutes a breach of the Distribution Agreement, potentially leading to termination of the agreement by Aunt Millie's Bakeries. Therefore, it is crucial for prospective franchisees to understand and adhere to all applicable employment laws and regulations in their operating area.