What is the limitation on damages and awards in disputes involving Aunt Millies Bakeries?

According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, any legal disputes are subject to limitations on the types of damages that can be awarded. Specifically, neither Aunt Millies Bakeries nor the distributor can be held liable for consequential, incidental, indirect, special, punitive, or exemplary damages. By agreeing to the terms of the franchise agreement, both parties waive their rights to claim such damages in any dispute resolution process. This waiver applies to all claims, regardless of their nature.

This limitation on damages has significant implications for a prospective Aunt Millies Bakeries franchisee. It means that if Aunt Millies Bakeries breaches the agreement or otherwise causes harm to the franchisee's business, the franchisee will be restricted in the types of financial recovery they can pursue. For example, the franchisee would likely be unable to recover lost profits, which are often considered consequential damages. Similarly, punitive damages, intended to punish the breaching party, are also waived.

However, the agreement does state that the prevailing party in any arbitration or other action to enforce the agreement will be entitled to recover its attorney's fees, expert fees, costs, and expenses in connection with such action, except as specifically provided in Section 11.2. This provision helps to offset some of the financial burden of legal action, but it does not negate the waiver of consequential, incidental, and punitive damages. Prospective franchisees should carefully consider the implications of this limitation and consult with legal counsel to understand their rights and potential remedies in case of a dispute with Aunt Millies Bakeries.