What disputes are specifically excluded from arbitration under the Auntie Annes franchise agreement?

According to the 2024 Auntie Annes Franchise Disclosure Document, the circumstances under which disputes would be excluded from arbitration are limited and primarily pertain to legal rights under specific state laws. For franchisees operating in Maryland, the franchise agreement specifies that they can enter into litigation with Auntie Annes for claims arising under the Maryland Franchise Registration and Disclosure Law, provided the litigation's nature isn't subject to arbitration under the standard franchise agreement. This ensures that franchisees in Maryland retain their rights under state law to pursue certain legal claims in court.

Additionally, the FDD includes addenda for Virginia and Washington, which modify the standard franchise agreement to comply with those states' franchise laws. For Virginia, if any clause in the franchise agreement regarding default or termination doesn't constitute "reasonable cause" as defined by Virginia law, that clause may not be enforceable. For Washington, the Washington Franchise Investment Protection Act may supersede the franchise agreement in areas of termination and renewal, and releases or waivers of rights signed by a franchisee will not include rights under the Act unless specific conditions are met, such as a negotiated settlement with independent counsel.

These stipulations primarily serve to protect franchisees' rights under state laws, ensuring that the standard franchise agreement does not override those protections. Prospective franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws, especially concerning dispute resolution and arbitration.