Under the Aunt Millies Bakeries Distribution Agreement, can disputes be submitted to arbitration?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Distribution Agreement | Summary | |
|---|---|---|---|
| u. | Dispute resolution by arbitration or mediation | Article 11 | Disputes between you and Aunt Millie’s Bakeries shall be first subject to mediation, and if unable to resolve the dispute, it may be submitted to final and binding arbitration if timely elected by either party. |
| v. | Choice of forum | Article 11 | All mediation, arbitration, and litigation proceedings must take place in the county where the principal place of business of distributor is located (subject to state law) |
| w | Choice of law | §12.8 | Indiana law applies to the Agreements with Aunt Millie’s Bakeries; New York law applies to the Agreements with DSA (subject to state law) |
| Provision | Section in Distribution Agreement | Summary | |
| u. | Dispute resolution by arbitration or mediation | Article 11 | Disputes between you and Aunt Millie's Bakeries shall be first subject to mediation, and if unable to resolve the dispute, it may be submitted to final and binding arbitration if timely elected by either party. |
| v. | Choice of forum | Article 11 | All mediation, arbitration, and litigation proceedings must take place in the county where the principal place of business of distributor is located (subject to state law) |
| w | Choice of law | §12.8 | Indiana law applies to the Agreements with Aunt Millie's Bakeries; New York law applies to the Agreements with DSA (subject to state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, disputes between the distributor and Aunt Millie's Bakeries are first subject to mediation. If mediation fails to resolve the dispute, either party can submit the dispute to final and binding arbitration, provided they elect to do so in a timely manner.
The arbitration process is governed by specific rules. Any party seeking relief must file an arbitration demand within ten days following the conclusion of the mediation process. This timeframe is considered an agreed time limitation. The arbitration will be conducted by a single arbitrator in accordance with the Judicial Arbitration and Mediation Services, Inc. (JAMS) procedures. The location for all mediation, arbitration, and litigation proceedings is the county where the distributor's principal place of business is located.
The arbitrator is required to apply the substantive law as specified in Section 12.8 of the Distribution Agreement, with the exception that the Federal Arbitration Act will control arbitration matters. The judgment rendered by the arbitrator is final and binding, and it can be entered in any court with the appropriate jurisdiction. This means that the arbitrator's decision is enforceable in a court of law.