What is the Auntie Annes deadline for commencing construction after the Effective Date?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
| EVENT | COMPLETION DEADLINE |
|---|---|
| Site Approval Deadline (Section 6.5.A.) | Within 150 days after the Effective Date |
| Construction Start Deadline (Section 6.5.B.) | Within 270 days after the Effective Date |
| Opening Deadline (Section 6.5.C.) | Within 360 days after the Effective Date |
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the deadline for commencing construction after the Effective Date depends on the specific agreement. For some agreements, the construction start deadline is within 270 days after the Effective Date. However, for other agreements, the construction start deadline is within 240 days after the Effective Date. The Effective Date is specified in Schedule A of the Franchise Agreement.
Meeting this deadline is crucial, as failure to do so can lead to penalties. Auntie Annes may offer an extension, but they are not obligated to do so, and may require a $2,500 extension fee. If the franchisee fails to meet the Construction Start Deadline within 30 calendar days after receiving notice of the default from Auntie Annes, Auntie Annes has the right to terminate the Franchise Agreement.
Prior to commencing construction, the franchisee must submit a complete set of final Architectural Plans to Auntie Annes by the Construction Start Deadline. Auntie Annes will review these plans and either accept them or provide comments for required changes. Construction cannot begin until Auntie Annes provides written acceptance of the final Architectural Plans. This process ensures that the construction aligns with Auntie Annes's standards and specifications.
Prospective franchisees should carefully review their Franchise Agreement and Schedule A to confirm the specific Construction Start Deadline applicable to their franchise. It is also advisable to maintain open communication with Auntie Annes throughout the site approval and construction phases to address any potential delays and ensure compliance with all requirements.