What is the definition of 'Proprietary Goods' that Auntie Annes franchisees must purchase from approved sources?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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. In addition, if we conduct test marketing to determine consumer trends and the salability of new food or non-food products and services, you may be required to purchase a reasonable quantity of test products we specify from 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, franchisees are required to purchase 'Proprietary Goods' from Auntie Anne's, its affiliates, or designated Approved Suppliers. These Proprietary Goods encompass a range of essential items necessary for operating the franchise.
The definition includes Proprietary Ingredients, Proprietary Products, proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging. This broad category ensures that franchisees maintain a consistent brand image and product quality across all locations.
Specifically, the Proprietary Goods also include printed paper, paper products, and plastic products that bear Auntie Anne's Proprietary Marks, such as dishes, containers, cartons, bags, napkins, and packaging supplies. Additionally, Auntie Anne's may require franchisees to purchase Trademarked Product Lines, such as t-shirts, apparel, mugs, and other merchandise bearing the Proprietary Marks, from approved sources. Auntie Anne's may also require franchisees to purchase reasonable quantities of test products from designated Approved Suppliers for test marketing purposes.