Does the Auntie Annes Concession Shop Agreement have a renewal term?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- C. Section 2.2 (Renewal Term) of the Agreement is deleted in its entirety.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes FDD, the Concession Shop Agreement does not offer a renewal term. The initial term of the Concession Shop Agreement is set for 10 years, commencing from the date the franchised business opens, as indicated in the document.
Specifically, Section 2.2 of the standard Franchise Agreement, which typically addresses renewal terms, is entirely deleted and replaced within the Concession Shop Schedule A. This means that franchisees operating an Auntie Annes Concession Shop will not have the option to renew their franchise agreement beyond the initial 10-year term.
This lack of a renewal option is a significant departure from standard franchising practices, where franchisees often have the right to renew their agreements, subject to certain conditions. Prospective Auntie Annes Concession Shop franchisees should carefully consider the implications of this limited term, as they will need to re-negotiate a new agreement or cease operations at the end of the 10-year period. This could affect long-term business planning and investment strategies.