How many arbitrators are used in disputes between Aunt Millies Bakeries and its distributors?
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' 2025 Franchise Disclosure Document, disputes that proceed to arbitration will be decided by a single, neutral arbitrator. This arbitration process is binding, meaning the decision is final and enforceable in court. The arbitration will be conducted following the rules of the Judicial Arbitration and Mediation Services, Inc. ("JAMS").
For a prospective Aunt Millies Bakeries distributor, this means that if mediation fails to resolve a dispute, the decision will be placed in the hands of one arbitrator. The location of the arbitration will be in the county where the distributor's principal place of business is located. This could be beneficial for the distributor, as it avoids the need to travel to Aunt Millies Bakeries' headquarters for the proceedings.
It is important to note that the arbitrator is bound by the substantive law outlined in the agreement, but the Federal Arbitration Act will govern the arbitration process itself. This ensures a legally sound process. The FDD also stipulates that neither party can claim consequential, incidental, indirect, special, punitive, or exemplary damages, which limits the scope of potential awards in arbitration.
This arbitration clause is fairly standard in franchise agreements, aiming to provide a quicker and more cost-effective resolution compared to traditional litigation. However, franchisees should carefully consider the implications of binding arbitration, as it limits their ability to appeal decisions in court.