For a co-branded Auntie Annes franchise, what representation and warranty must the franchisee make regarding the Owners under the Auntie Annes agreement and the Co-Branded Agreement?

According to Auntie Annes's 2024 Franchise Disclosure Document, if a franchisee is entering into a co-branded agreement, they must represent and warrant that the franchisee and owners under the Auntie Annes agreement are identical to those under the Co-Branded Agreement. Furthermore, this identity must continue throughout the term of the agreement. This means the ownership structure and the individuals involved must be the same for both the Auntie Annes franchise and the co-branded franchise.

This requirement ensures consistency and alignment between the two franchise operations. Auntie Annes wants to make sure that the same individuals or entities are responsible for both the Auntie Annes franchise and its co-branded counterpart. This avoids potential conflicts of interest or operational discrepancies that could arise if different owners were involved.

For a prospective franchisee, this means careful planning is needed regarding the ownership structure from the outset. The individuals or entities listed as owners in the Auntie Annes Franchise Agreement must be exactly the same as those in the Co-Branded Agreement. Any changes to the ownership structure during the term of the agreement would likely require the franchisor's approval and might not be permitted if it violates this representation and warranty. This is a critical aspect to consider when evaluating a co-branded Auntie Annes franchise opportunity.