Who are the independent drivers (IOs) for Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §2.3 INDEPENDENT CONTRACTORS: The parties intend to create an independent contractor relationship and it is of the essence of this Agreement that DISTRIBUTOR be an independent contractor for all purposes and DISTRIBUTOR shall only identify himself as such in all third party dealings. Any contrary final determination by any board, tribunal or court of competent jurisdiction shall require the amendment of this Agreement in any way necessary to establish an independent contractor relationship. As an independent contractor, DISTRIBUTOR has the right to operate the business as DISTRIBUTOR chooses, and shall bear all risks and costs of operating such business. DISTRIBUTOR has no authority to retain any person on behalf of AUNT MILLIE'S. It is expressly understood that DISTRIBUTOR has no claim, or right under any circumstances, to any benefits or other compensation currently paid by AUNT MILLIE'S to employees, or hereafter declared by AUNT MILLIE'S for the benefit of employees. No fiduciary relationship exists between the parties.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the independent operators (IOs) are referred to as 'DISTRIBUTORs' within the agreement. The FDD specifies in Article 2.3 that the relationship between Aunt Millie's and the DISTRIBUTOR is that of independent contractors. This means that the DISTRIBUTOR operates their business independently and bears all the associated risks and costs. The DISTRIBUTOR has the right to operate the business as they choose, but they have no authority to retain any person on behalf of Aunt Millie's.
This independent contractor status is further reinforced by stating that the DISTRIBUTOR has no claim to any employee benefits or compensation paid by Aunt Millie's. The agreement emphasizes that no fiduciary relationship exists between the parties, underscoring the arm's-length nature of the arrangement. Any determination by a legal body that contradicts this independent contractor relationship would require the agreement to be amended to re-establish that relationship.
In practical terms, this means that an Aunt Millie's Bakeries franchisee, acting as a DISTRIBUTOR, is responsible for managing their own business, including all operational costs and risks. They are not considered an employee of Aunt Millie's and do not receive employee benefits. This arrangement allows the franchisee a degree of autonomy in how they run their distribution business, but it also places the onus on them to manage the business effectively and bear the financial responsibility for its success or failure.