Can an Aunt Millies Bakeries franchisee hire employees to operate the franchised business?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not require that you personally operate the franchised business, but we hold the corporate Distributor and the majority shareholder responsible for compliance with the Distribution Agreement. You are free to hire employees and/or to retain independent contractors as you deem appropriate to discharge your responsibilities under the Distribution Agreement. The persons you hire to operate the franchised business are not required to have any amount of equity interest in the franchised business.
You shall be responsible for these employees and/or independent contractors and their compliance with all the terms and conditions of the Distribution Agreement and you must comply with all applicable federal, state and local laws and regulations concerning your employer/employee or other relationship with them, including the maintenance of all required worker's compensation and unemployment insurance, and the payment and/or withholding of all applicable payroll related taxes (Distribution Agreement, §4.3).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 31)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, franchisees have the option to hire employees or retain independent contractors to help them run their business. While Aunt Millie's Bakeries does not require the franchisee to personally operate the business, the corporate distributor and the majority shareholder are held responsible for adhering to the Distribution Agreement.
This means that while an Aunt Millies Bakeries franchisee isn't required to be involved in the day-to-day operations, they are ultimately accountable for how the business is run and whether it complies with the franchise agreement. The people hired to operate the franchised business are not required to have any equity interest in the franchised business.
The franchisee is responsible for ensuring that any employees or independent contractors comply with the terms and conditions of the Distribution Agreement. Additionally, the franchisee must adhere to all applicable federal, state, and local laws and regulations concerning employer/employee relationships, including maintaining worker's compensation and unemployment insurance, and handling all payroll-related taxes.