In a co-branded franchise location, what standard must an Auntie Annes franchisee meet regarding duties and obligations?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20. Section 22.11 (Additional Terms; Inconsistent Terms): The following additional terms amend the applicable Sections of the Agreement:
- A. Section 1.1 (Grant of Franchise) is amended to add the following sentence:
The Franchised Business must be operated at the Accepted Location in conjunction with a [Cinnabon® ] [Jamba® ] franchised business (the "Co-Branded Franchise") that is operated by you in accordance with a [Cinnabon® ] [Jamba® ] franchise agreement (the "Co-Branded Agreement") between you and [Cinnabon Franchisor SPV LLC] [Jamba Franchisor SPV LLC] (the "Co-Branded Franchisor"). The Franchised Business and the Co-Branded Franchise shall be co-branded using the Marks and the trademarks licensed to you by the Co-Branded Franchisor.
B. Section 1.4 (Owners of Equity) is amended to add the following sentence:
You represent and warrant that the Franchisee and Owners under this Agreement are identical to, and throughout the Term will continue to be identical to, those under the Co-Branded Agreement.
- J. Section 17.2 (Our Termination: No Opportunity to Cure) is amended by adding the following new Section 17.2.M.:
- 17.2.M. Your Co-Branded Agreement terminates or expires or you for any other reason cease to operate the Co-Branded Franchise at the Accepted Location.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, if you operate a co-branded Auntie Anne's franchise with either Cinnabon or Jamba, the franchise must be run in conjunction with the co-branded franchise at the accepted location. The co-branded franchise must be operated according to the franchise agreement between you and either Cinnabon Franchisor SPV LLC or Jamba Franchisor SPV LLC, who are the co-branded franchisors. The Auntie Anne's franchise and the co-branded franchise must be co-branded using the trademarks licensed to you by both Auntie Anne's and the co-branded franchisor.
Furthermore, the franchisee and owners under the Auntie Anne's franchise agreement must be identical to those under the co-branded agreement. This means that the ownership structure and individuals involved in both franchises must be the same throughout the term of the agreements.
If the co-branded agreement terminates, expires, or you cease to operate the co-branded franchise at the accepted location for any reason, your Auntie Anne's franchise agreement will also be terminated. This highlights the interconnectedness of the two franchises and the importance of maintaining both agreements in good standing. This condition ensures that the Auntie Anne's franchise remains tied to the co-branded operation, and failure to maintain the co-branded franchise will result in the termination of the Auntie Anne's franchise as well.