What is a condition related to the landlord's agreement when transferring an Auntie Annes franchise?

According to Auntie Anne's 2024 Franchise Disclosure Document, a condition for transferring a franchise involves obtaining written notice from the landlord. Specifically, the landlord must agree to transfer the Site Agreement to the new franchisee. This ensures that the new franchisee has the legal right to operate at the existing location.

This requirement protects Auntie Anne's by ensuring that the franchise location remains viable under new ownership. Without the landlord's agreement, the transfer could be jeopardized, potentially disrupting operations and affecting the brand's reputation. For a prospective franchisee, this means they must work closely with the seller and the landlord to secure this written consent as part of the transfer process.

Furthermore, if the lease is renewed or extended for one year or more as a condition of the transfer, the transferee will be assessed the then-current lease renewal fee, if any. This has financial implications for the buyer, who must factor in this potential cost when negotiating the purchase and lease terms. It is a fairly standard practice in franchising to ensure the lease terms are updated and agreed upon during a transfer to protect all parties involved.