What is the deadline for completing the first Remodel of an Auntie Annes franchise after the Opening Date?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- B.
Remodel.
Within six months after the tenth and (if you are entering into a Renewal Term) twentieth anniversaries of the Opening Date, you must, at your sole expense and in accordance with our then-current Standards and directives, remodel, refurbish, renovate, and modernize the Franchised Business to meet our then-current operational, branding, and architectural design Standards (a "Remodel").
Generally, a Remodel may include all of the modifications, upgrades, and replacements required in a Refresh, plus other more extensive alterations to your Franchised Business' layout, structure, or design, such as redesigning the interior and exterior appearance and interior layout of the Franchised Business or adding a drivethru to a Franchised Business.
- C.
Process for Refreshes and Remodels.
Before you begin a Refresh or a Remodel, we, our affiliate, or our designee will in-person or virtually inspect your Franchised Business and produce a site survey and/or design plan that will comply with our then-current Standards.
We may require you to pay us, our affiliate, or our designee a reasonable fee for producing such site survey and/or design plan.
All plans, designs, furniture, fixtures, equipment, and décor related to a Refresh or a Remodel must be approved by us in writing, must conform to our then-current Standards and applicable Laws, and, if we so require, must be purchased from Approved Suppliers we designate or approve in writing.
For each Remodel, you must comply with Sections 6.1 (Leasehold Improvements), 6.2 (Architectural Plans), and 6.3 (Construction, Inspection, and Government Approvals) of this Agreement.
You acknowledge that each Refresh or Remodel may require you to make a significant capital investment into your Franchised Business.
You agree to incur, without limitation, any capital expenditures required in order to comply with this obligation and our requirements (even if those expenditures cannot be amortized over the remaining Term).
- D.
Requirements Are Not Exclusive.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, franchisees must complete their first Remodel within six months after the tenth anniversary of their Opening Date. If the franchisee enters into a Renewal Term, they must complete another Remodel within six months after the twentieth anniversary of the Opening Date.
The Remodel involves modernizing the franchise to meet Auntie Anne's then-current operational, branding, and architectural design standards. This may include modifications, upgrades, and replacements required in a Refresh, along with more extensive alterations to the layout, structure, or design of the Franchised Business. Examples include redesigning the interior and exterior appearance, interior layout, or adding a drive-thru.
Before starting a Remodel, Auntie Anne's, its affiliate, or its designee will inspect the Franchised Business in person or virtually to produce a site survey and/or design plan that complies with their current standards. The franchisee may be required to pay a reasonable fee for this site survey and/or design plan. All plans, designs, furniture, fixtures, equipment, and décor related to the Remodel must be approved by Auntie Anne's in writing and conform to their standards and applicable laws. If required, these items must be purchased from Approved Suppliers designated or approved in writing by Auntie Anne's.
For each Remodel, franchisees must comply with the sections of the Franchise Agreement regarding leasehold improvements, architectural plans, and construction, inspection, and government approvals. The FDD notes that each Refresh or Remodel may require a significant capital investment, and the franchisee agrees to incur any necessary capital expenditures to comply with these obligations and Auntie Anne's requirements, even if those expenditures cannot be amortized over the remaining Term.