What is the definition of 'Goods' that Auntie Annes franchisees must purchase from approved sources?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
The availability and terms of financing will depend on factors like the availability of financing generally, your credit worthiness, collateral you pledge, policies of your lending institution, and economic conditions in your area.
ITEM 8. RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Required Purchases. We have the right to require that Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services (collectively, "Goods") that you purchase for resale or purchase or lease for use in your Shop: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from Approved Suppliers; (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates); and/or (v) be purchased as part of a purchasing program, arrangement, or contract that we negotiate or specify. We may add or change Approved Suppliers at any time.
You must purchase all of your requirements of Proprietary Ingredients, Proprietary Products, and proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging (collectively, the "Proprietary Goods") from us, our affiliates, or our designated Approved Suppliers. The Proprietary Goods include printed paper, paper products, and plastic products bearing our Proprietary Marks (including, for example, dishes, containers, cartons, bags, napkins, and packaging supplies). We may require you to purchase certain trademarked product lines consisting of t-shirts, apparel, mugs and other merchandise and products bearing the Proprietary Marks ("Trademarked Product Lines") from us, our affiliates, or our designated Approved Suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, "Goods" are defined as Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services that franchisees purchase for resale or for use in their shops. Auntie Anne's has the right to stipulate that these "Goods" meet specific standards, be a particular brand, kind, or model, and be acquired exclusively from Approved Suppliers or a single designated source, which may include Auntie Anne's or its affiliates. These "Goods" may also be mandated as part of a purchasing program or contract negotiated or specified by Auntie Anne's.
Auntie Anne's franchisees are obligated to purchase all Proprietary Ingredients, Proprietary Products, and proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging, collectively termed "Proprietary Goods," from Auntie Anne's, its affiliates, or designated Approved Suppliers. These Proprietary Goods encompass printed paper, paper products, and plastic products bearing Auntie Anne's Proprietary Marks, such as dishes, containers, cartons, bags, napkins, and packaging supplies.
Auntie Anne's may also require franchisees to purchase certain trademarked product lines, including t-shirts, apparel, mugs, and other merchandise bearing the Proprietary Marks, from Auntie Anne's, its affiliates, or designated Approved Suppliers. Additionally, franchisees may be required to purchase specified quantities of test products from designated Approved Suppliers if Auntie Anne's conducts test marketing to assess consumer trends and the salability of new food or non-food products and services.