What specific action does Aunt Millies Bakeries agree not to take during a dispute with a distributor?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
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
DISTRIBUTOR to sell, the Distribution Rights, as called for by Section 9.4 above, until the dispute resolution process has been concluded or the time for either party to further proceed with dispute resolution has expired.
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, during a dispute with a distributor, Aunt Millies Bakeries agrees not to sell, nor require the distributor to sell, the Distribution Rights as outlined in Section 9.4 of the agreement. This restriction is in place until the dispute resolution process is concluded or the time for either party to further proceed with dispute resolution has expired.
This provision offers a degree of protection to the distributor during a disagreement. It prevents Aunt Millies Bakeries from forcing a sale of the distribution rights while the dispute is ongoing, ensuring the distributor isn't pressured to relinquish their rights prematurely. This can be particularly important for a distributor who believes they have a strong case and wishes to see the dispute resolved fairly.
However, it's important to note that this restriction is temporary. Once the dispute resolution process concludes or the time to proceed expires, Aunt Millies Bakeries is no longer bound by this agreement. Therefore, the distributor should actively participate in the dispute resolution process to protect their interests and ensure a timely resolution. This clause provides a limited window of protection, but the distributor must still be prepared for potential outcomes that could involve the sale of their distribution rights.