According to the Auntie Annes FDD, what are 'Businesses'?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
The undersigned represents and warrants that he/she is not employed by or in any way affiliated with or connected to, directly or indirectly, any other person or company that produces or sells products that compete with the products sold at Auntie Anne's shop or that otherwise competes with Auntie Anne's shops. The undersigned further represents and warrants that he/she is not submitting a franchise application to the Franchisor for the purpose of obtaining information about the Auntie Anne's franchise system for or on
behalf of any other person or company. The undersign has or will disclose to Franchisor all businesses that he/she is in any way affiliated with or connected to, directly or indirectly.
The undersigned agrees to indemnify and hold Auntie Anne's harmless from any and all costs, expenses, damages and attorneys' fees arising from or related to the undersigned's breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Anne's Franchise Disclosure Document, the term 'businesses' refers to any entity or operation that the applicant is affiliated with, directly or indirectly. This includes any company that produces or sells products that compete with Auntie Anne's, or that otherwise competes with Auntie Anne's shops.
This means that prospective franchisees must disclose any existing business ventures or connections they have that could be seen as competitive to Auntie Anne's. This disclosure is important because Auntie Anne's wants to ensure that franchisees are fully committed to the brand and do not have conflicting interests that could harm the Auntie Anne's system. The franchisee also warrants that they are not seeking information about the Auntie Anne's franchise system on behalf of another person or company.
The franchisee must disclose all businesses they are affiliated with, and they agree to indemnify Auntie Anne's from any costs, expenses, damages, and attorney's fees resulting from a breach of this agreement. This clause protects Auntie Anne's from potential conflicts of interest and ensures that franchisees are transparent about their other business activities.