What is the Construction Start Deadline for beginning construction at the Accepted Location after Auntie Annes signs the Franchise Agreement?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
You must begin construction at the Accepted Location within 270 days after we sign the Franchise Agreement (the “Construction Start Deadline”).
We may, in our sole discretion and upon your request, grant you an extension to any of these deadlines for a fee.
We may terminate your Franchise Agreement (without refunding the Initial Franchise Fee) if you fail to meet the Site
Approval Deadline or the Construction Start Deadline and fail to cure such failure within 30 days or if you do not meet the Opening Deadline. (Franchise Agreement, Section 6.5)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a franchisee must begin construction at the Accepted Location within 270 days after Auntie Annes signs the Franchise Agreement. This deadline is referred to as the "Construction Start Deadline."
Meeting this deadline is crucial, as failure to begin construction within the stipulated timeframe can lead to penalties. Auntie Annes retains the right to terminate the Franchise Agreement, and the franchisee may not receive a refund of the initial franchise fee if the franchisee fails to meet the Construction Start Deadline and does not rectify the situation within 30 days.
However, Auntie Annes may, at its discretion and upon request from the franchisee, grant an extension to the Construction Start Deadline, potentially offering some flexibility in the event of unforeseen delays. It is important to note that extensions may be subject to a fee.