What constitutes a "Streetside Location" for an Auntie Annes franchise, where co-branded businesses with Cinnabon or Jamba are restricted?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
During the Term, we will not establish or operate, nor license any other person to establish or operate, a Business operating under the Marks and the System that is co-branded and co-located with a [Cinnabon® business that is operated under the Cinnabon® marks and system] [Jamba® business that is operated under the Jamba® marks and system] (a "Co-Branded Business") at a Streetside Location within the Area of Protection. "Streetside Locations" include freestanding, inline, and endcap locations on city streets or in shopping centers (including power centers, lifestyle centers, and strip centers, but excluding malls (enclosed and open air) and outlet malls and centers).
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes FDD, a "Streetside Location" is defined for the purposes of establishing protected rights and operational restrictions for co-branded Auntie Annes, Cinnabon, and Jamba locations. Specifically, Auntie Annes will not establish or license others to operate a co-branded business with Cinnabon or Jamba at a Streetside Location within a franchisee's Area of Protection.
Streetside Locations are defined as freestanding, inline, and endcap locations situated on city streets or within shopping centers. These shopping centers include power centers, lifestyle centers, and strip centers. However, the definition explicitly excludes locations within malls (both enclosed and open-air) and outlet malls and centers. This distinction is important for prospective franchisees to understand, as it affects where Auntie Annes might allow or restrict co-branded locations to protect the franchisee's territory.
In essence, this definition clarifies the types of locations where Auntie Annes franchisees can expect a certain level of territorial protection against co-branded businesses. The exclusion of malls and outlet centers from the definition of Streetside Locations suggests that Auntie Annes retains the right to establish co-branded locations in those venues, regardless of any Area of Protection granted for a Streetside Location. This could impact a franchisee's business strategy and location selection, as it highlights potential areas of competition or saturation.