What limitation is placed on the arbitration demand following mediation with 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 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, if mediation does not resolve a dispute, any party seeking relief through arbitration must file their demand within ten days after the mediation concludes. This ten-day period is considered a strict time limitation. Furthermore, the arbitration demand must be limited to the specific causes of action that were within the scope of the mediation.
This means a franchisee cannot introduce new claims or issues in arbitration that were not previously discussed during the mediation process. This limitation encourages both parties to fully address all relevant issues during mediation, as any issues not raised may be excluded from later arbitration.
For a prospective Aunt Millies Bakeries franchisee, this highlights the importance of thorough preparation and engagement during mediation. It is crucial to identify and present all relevant claims and issues during mediation to ensure they can be considered in any subsequent arbitration proceedings. Failing to do so could limit the franchisee's ability to seek relief on those issues later on.