In the Richards v. Bimbo Foods Bakeries Distribution case, what was the settlement amount?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 3: LITIGATION]
-
- Richards v.
Bimbo Foods Bakeries Distribution, Inc. U.S.
District Court for Middle District of Florida, Case No. 2:15-CV-140-FTM-29CM.
On March 4, 2015, Plaintiff filed suit against BFBD, alleging Breach of Contract and Fraud in the Inducement.
On March 30, 2015, BFBD filed a Motion to Dismiss Plaintiff's claims.
On December 9, 2015, the parties reached a settlement, without admitting liability, in the amount of $37,500 and the case was dismissed.
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 Richards v. Bimbo Foods Bakeries Distribution, Inc. was settled on December 9, 2015, with Bimbo Foods Bakeries Distribution not admitting liability. The settlement amount was $37,500, and the case was subsequently dismissed.
This type of disclosure is standard in franchise disclosure documents, as it informs potential franchisees about the franchisor's litigation history. It is important to note that settlements are not necessarily admissions of guilt or wrongdoing, but rather a resolution to avoid further legal costs and potential risks.
Prospective franchisees should carefully review the litigation history of Bimbo Foods Bakeries Distribution and consider the nature and frequency of legal disputes. While one settled case may not be a cause for alarm, a pattern of similar lawsuits could indicate potential issues with the franchise system's operations or franchisee relations.