What is the deadline for an Auntie Annes franchisee to request a renewal term in writing?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
A. Grant of Renewal Term. We may, in our reasonable discretion, grant you one additional 20-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term"). To obtain the Renewal Term, (i) at all times during the Term, you must have substantially and timely complied with each provision of this Agreement and any other agreements between you and us, our affiliates, or your landlord and you must not have any defaults in existence as of the expiration of the Initial Term, and (ii) you must request, in writing, no earlier than 12 months, but no later than six months before the expiration of the Initial Term, that we grant you a Renewal Term. We will then provide you with an Application for a Renewal Term (an "Application"), which you must complete and return to us within 10 days after we deliver it to you. We will evaluate your Application under substantially the same standards as we evaluate an application for a franchise submitted by a then-new franchisee.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, to be granted a renewal term, a franchisee must request it in writing no later than six months before the expiration of the initial term. This request must be made within a window that opens 12 months before the initial term's expiration. The franchisor has the discretion to grant an additional 20-year term.
To qualify for a renewal term, the franchisee must have substantially and timely complied with all provisions of the Franchise Agreement and any other agreements with Auntie Annes, its affiliates, or the franchisee's landlord. Additionally, the franchisee must not have any outstanding defaults at the time of the initial term's expiration.
After the franchisee submits a written request within the specified timeframe, Auntie Annes will provide an Application for Renewal Term, which the franchisee must complete and return within 10 days of receipt. Auntie Annes will then evaluate the application using standards similar to those applied to new franchise applications.