If arbitration is elected, is it binding for disputes involving Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §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, if the parties cannot resolve a dispute through mediation, either party can demand arbitration within ten days after mediation concludes. This demand must be limited to the issues within the scope of the mediation. The arbitration is binding and will be conducted by a neutral arbitrator following the rules of the Judicial Arbitration and Mediation Services, Inc. (JAMS).
The arbitration will be held in the county where the Aunt Millies Bakeries distributor's principal place of business is located. The arbitrator must apply the substantive law specified in Section 12.8 of the Distribution Agreement, but the Federal Arbitration Act will govern arbitration matters. The arbitrator's judgment is final and binding, and can be entered in any court with jurisdiction.
This means that any disputes with Aunt Millies Bakeries that go to arbitration will be legally binding, limiting a franchisee's options for further legal action. Franchisees should be aware of this binding arbitration clause, as it can significantly impact how disputes are resolved. It is advisable to seek legal counsel to fully understand the implications of this clause.