What is the initial step in resolving disputes between a distributor and Aunt Millies Bakeries?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
- §11.2 MEDIATION: In the event of any dispute, either party shall initiate a mediation procedure within five (5) days of the date on which facts respecting the dispute first come to such party's attention, by submitting a written request for mediation to the Judicial Arbitration & Mediation Services, Inc. ("JAMS) according to its procedures, or any other mediation service mutually agreed to by the parties according to such mediator's procedures. The mediation process shall begin promptly and shall be concluded within ten (10) business days of the day the request for mediation is made, unless the parties mutually otherwise agree. Any and all discussions, negotiations, findings or other statements by the mediator and/or the parties made in connection with the mediation shall be privileged and confidential and shall not be admissible into evidence in any litigation. All mediation proceedings shall take place in the county where the principal place of business of DISTRIBUTOR is located. The expenses of the mediation service shall be borne equally by both parties, and all other expenses relating to such mediation shall be borne by the party incurring them. The commencement of any dispute resolution procedure shall not act to prevent AUNT MILLIE'S from taking any action in connection with DISTRIBUTOR's business, which may be the subject of the dispute, including the operation of DISTRIBUTOR'S route, except that AUNT MILLIE'S agrees that it will not sell, nor require
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, the initial step in resolving disputes between Aunt Millie's and a distributor is mediation. Within five days of either party becoming aware of a dispute, they must submit a written request for mediation to Judicial Arbitration & Mediation Services, Inc. (JAMS) or another mutually agreed-upon mediation service.
The mediation process is designed to begin promptly and conclude within ten business days from the request date, unless both parties agree to extend this period. All discussions, negotiations, findings, and statements made during mediation are considered privileged and confidential, making them inadmissible as evidence in any subsequent litigation. The mediation proceedings will occur in the county where the distributor's principal place of business is located.
The expenses associated with the mediation service are to be shared equally between Aunt Millie's Bakeries and the distributor. Each party is responsible for covering their own additional expenses related to the mediation. It's important to note that initiating a dispute resolution procedure does not prevent Aunt Millie's from taking actions related to the distributor's business, including the operation of the distributor's route. However, Aunt Millie's agrees not to sell or require the distributor to sell the Distribution Rights until the dispute resolution process concludes or the time for further dispute resolution has expired.