In an Auntie Annes Control Transfer, on what date will the term of the new franchise agreement expire?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
uct" includes any soft pretzels or soft-pretzel-based products.
19. Section 20.5 (Notices):
The notice address for the Franchisor shall be: Auntie Anne's Franchisor SPV LLC, 5620 Glenridge Drive, NE, Atlanta, Georgia 30342, Attention: Legal Department
The notice address for the Franchisee shall be: «C1_contact_street», «C1_contact_city», «C1_contact_state» «C1_contact_zip».
20. Section 22.11 (Additional Terms; Inconsistent Terms):
A. Section 1.1 (Grant of Franchise) of the Agreement is amended to add the following sentence:
Your Franchised Business shall operate as an Auntie Anne's® [concession trailer / food truck / temporary stand with a
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
The 2024 Auntie Anne's Franchise Disclosure Document states that for a Concession Shop, the term of the franchise agreement begins on the effective date and ends 10 years from the date the franchised business opens. This term applies unless the agreement is terminated sooner as provided in other sections of the agreement.
For a standard Auntie Anne's franchise, the initial term of the agreement begins on the effective date and ends 20 years from the date the franchised business opens, unless the agreement is terminated sooner. Auntie Anne's may grant one additional 20-year renewal term if the franchisee has substantially complied with the agreement and requests the renewal in writing no earlier than 12 months, but no later than six months before the expiration of the initial term.
Therefore, in the event of a control transfer, the expiration date of the new franchise agreement will depend on whether the franchise is a Concession Shop or a standard franchise. For a Concession Shop, the term will end 10 years from the opening date, while for a standard franchise, the term will end 20 years from the opening date, unless terminated earlier or a renewal term is granted.