In the case of Greaves v. Bimbo Foods Bakeries Distribution, Inc., what was the settlement amount and date?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Greaves v. Bimbo Foods Bakeries Distribution, Inc. In an action filed in the Court of Common Pleas of Erie County, Pennsylvania (Civil Action No. 15638-2010; filed on January 4, 2010), this distributor claimed that the BFBD had improperly denied him the exclusive right to distribute private label bread products to all of the outlets in his sales area. The distributor claimed that BFBD breached the distribution agreement. The distributor sought damages and an accounting of the private label sales to outlets in his sales area. The Company denied the allegations. The case settled on June 21, 2016 for $30,00
Source: Item 3 — LITIGATION (FDD pages 14–29)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the case of Greaves v. Bimbo Foods Bakeries Distribution, Inc. was settled on June 21, 2016, for $30,000. The case, filed on January 4, 2010, in the Court of Common Pleas of Erie County, Pennsylvania, involved a distributor claiming that Bimbo Foods Bakeries Distribution improperly denied him the exclusive right to distribute private label bread products to all outlets in his sales area, alleging a breach of the distribution agreement. The distributor sought damages and an accounting of the private label sales to outlets in his sales area, but Bimbo Foods Bakeries Distribution denied the allegations.
This type of information is relevant to potential franchisees as it provides insight into the types of disputes that can arise between Bimbo Foods Bakeries Distribution and its distributors, as well as the financial implications of such disputes. While a $30,000 settlement may not seem significant, it highlights the importance of understanding the terms of the distribution agreement and the potential for disagreements over exclusive distribution rights.
Prospective franchisees should carefully review the distribution agreement with legal counsel to fully understand their rights and obligations regarding product distribution within their designated sales area. Understanding the details of past litigation can help a franchisee anticipate potential conflict areas and ensure they are operating in compliance with the agreement to minimize the risk of similar disputes.