What is the deadline for Site Approval for an Auntie Annes franchise, as measured from the Effective Date?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
cation, (ii) obtain our acceptance of the Accepted Location, (iii) sign any documentation we require to document the Accepted Location, (iv) obtain our acceptance of a Lease for the Accepted Location, and (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location (the "Site Approval Deadline").
- B. Construction Start Deadline. You must (i) submit to us a complete set of final Architectural Plans and (ii) begin the construction and equipping of the Franchised Business by the deadline specified in Schedule A (the "Construction Start Deadline").
- C. Opening Deadline. You must open the Franchised Business by the deadline specified in Schedule A (the "Opening Deadline"). You must notify us of your proposed Opening Date at least 30 days in advance. We have the right to inspect your Franchised Business and take other measures we deem appropriate to determine whether you have complied with our Standards and are ready to begin operations. You must not begin operations until we authorize you to do so in writing.
- D. Failure to
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, the deadline for Site Approval is specified in Schedule A of the Franchise Agreement. If a franchisee fails to meet the Site Approval Deadline, they may request an extension before the deadline expires. However, Auntie Annes has the right to require the franchisee to pay a $2,500 extension fee if they agree to modify or if the franchisee misses any of the deadlines.
If the franchisee fails to cure their failure to meet the Site Approval Deadline within 30 calendar days after Auntie Annes sends a notice of such default, Auntie Annes may terminate the Franchise Agreement.
For multi-unit franchisees, Appendix B of the Multi-Unit Addendum states that the first MUA Business to satisfy the requirements of the Site Approval Deadline will be subject to the deadlines listed for the 1st MUA Business. The second MUA Business to satisfy the requirements of the Site Approval Deadline will be subject to the deadlines listed for the 2nd MUA Business, and so on. If the multi-unit franchisee fails to meet the minimum number of Sites for MUA Businesses approved by each Site Approval Deadline, Auntie Annes has the right to terminate the MU Addendum and the related MUA Franchise Agreements for unopened Franchised Businesses.