What approvals are required for an Auntie Annes franchisee to relocate the SRU?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Assignment.
Lessor may assign, at its sole discretion and without Lessee's consent, its rights and obligations under this Agreement.
Lessee may not assign it's rights and obligations under this Agreement except upon the prior written consent of Lessor.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
Based on the 2024 Auntie Annes Franchise Disclosure Document, the franchisee ('Lessee') needs prior written consent from the franchisor ('Lessor') to assign their rights and obligations under the SRU lease agreement. The FDD states that the Lessor (Auntie Anne's) may assign its rights and obligations under the agreement at its sole discretion and without the franchisee's consent. However, the franchisee cannot do the same without the Lessor's explicit approval. This requirement is outlined within the context of general contract terms related to the Satellite Retail Unit (SRU) Addendum.
In practical terms, this means an Auntie Annes franchisee cannot independently decide to relocate or transfer their SRU to a new location or operator without first obtaining written permission from Auntie Anne's Franchisor SPV LLC. This provision protects Auntie Anne's interests by ensuring they maintain control over where and how their SRUs are operated, upholding brand standards and operational consistency.
For a prospective franchisee, this highlights the importance of clear communication with Auntie Anne's regarding any potential relocation plans. It also underscores the need to carefully review all terms of the lease agreement and franchise agreement to fully understand the obligations and restrictions related to the SRU. Failure to obtain prior written consent could result in a breach of contract, potentially leading to penalties or termination of the franchise agreement.
While the FDD excerpt specifies the need for written consent to assign rights and obligations, it does not detail the specific criteria or process Auntie Anne's uses to evaluate relocation requests. A prospective franchisee should directly inquire with Auntie Anne's about the factors considered when assessing a relocation request, the required documentation, and the typical timeframe for obtaining a decision. Understanding these specifics is crucial for making informed business decisions and avoiding potential conflicts with the franchisor.