Is a copy of the guaranty of GoTo Systems attached as an exhibit in the Auntie Annes FDD?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Attached as Exhibit A to this Disclosure Document are the audited financial statements of GoTo Systems, our parent company, which include the consolidated balance sheets as of December 31, 2023 and December 25, 2022 and the related consolidated statements of operations, changes in member's equity, and cash flows for the fiscal years ended December 31, 2023, December 25, 2022, and December 26, 2021. GoTo Systems guarantees the performance of our obligations under the Franchise Agreement. A copy of the guaranty of GoTo Systems is attached as Exhibit A.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 105–106)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, a copy of the guaranty of GoTo Systems is attached as Exhibit A. This guaranty signifies that GoTo Systems, the parent company of Auntie Annes, is committed to fulfilling the obligations of Auntie Anne's Franchisor SPV LLC under the franchise agreement. This provides a level of financial security for franchisees.
The inclusion of this guaranty as Exhibit A means that prospective Auntie Annes franchisees can review the specific terms and conditions of the guaranty. This allows them to understand the extent to which GoTo Systems is liable for Auntie Annes' obligations. It also outlines the conditions under which the guaranty remains in effect, such as until all obligations are satisfied or the liability of Auntie Annes to its franchisees has been completely discharged.
The guaranty is signed by Michael J. Dixon, Chief Financial Officer of GoTo Foods Systems LLC, on March 29, 2024, indicating the date the guarantee was executed. This document assures franchisees that the parent company is legally bound to support Auntie Annes in meeting its franchise obligations, which can be a significant factor in a franchisee's investment decision.