Is the Auntie Annes Area of Protection dependent on achieving a certain sales volume?

According to Auntie Annes's 2024 Franchise Disclosure Document, a franchisee's territorial protection is generally not dependent on achieving a specific sales volume, market penetration, or other similar factors. However, this is conditional, as the franchisee must remain in compliance with the Franchise Agreement. If a franchisee defaults under the Franchise Agreement and fails to correct the default within the given cure period, Auntie Annes has the right to reduce or eliminate the Area of Protection. This is in addition to any other remedies available to Auntie Annes.

It is important to note that this protection, or lack thereof, applies differently based on the type of Auntie Annes shop. For standard Auntie Annes shops, franchisees do not receive an exclusive territory. They may face competition from other franchisees, outlets owned by Auntie Annes, or other channels of distribution. However, Co-Branded Shops in Streetside Locations may receive an Area of Protection, the specifics of which are negotiated and outlined in the Franchise Agreement.

For prospective Auntie Annes franchisees, this means that maintaining compliance with the Franchise Agreement is crucial to preserving any Area of Protection granted. The absence of sales volume requirements for maintaining territorial protection offers some security, but the risk of losing that protection due to other defaults should be carefully considered. Franchisees should fully understand the terms of the Franchise Agreement and their obligations to avoid potential loss of their Area of Protection.