What conditions must an Auntie Annes franchisee meet to be granted a renewal term?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
B. Section 2.1 (Initial Term) of the Agreement is deleted in its entirety and replaced with the following:
Term. The term of this Agreement (the "Term") will begin on the Effective Date and will end 10 years from the date that your Franchised Business opens for business (the "Opening Date"), unless this Agreement is terminated sooner as provided in other sections of this Agreement.
- 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)
Based on the 2024 Auntie Annes Franchise Disclosure Document, the standard franchise agreement for a full store has been modified for Concession Shops (such as concession trailers, food trucks, or temporary stands). One significant change is that Section 2.2, which pertains to renewal terms, has been entirely deleted from the agreement.
This means that the option to renew the franchise agreement is not available for franchisees operating these types of Auntie Annes locations. The term of the agreement for a Concession Shop will begin on the effective date and end 10 years from the date the franchised business opens, unless the agreement is terminated sooner under other sections of the agreement.
Prospective franchisees should be aware that this lack of a renewal option may impact their long-term business planning and investment strategies. It is important to fully understand the implications of this change and to discuss any concerns with Auntie Annes before entering into a franchise agreement. This is a departure from the typical franchise model, where renewal options are often included, so franchisees should carefully consider this aspect.