What fees might Auntie Annes charge if a franchisee relocates their shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
If we approve your request to relocate, in our sole discretion, then (i) the Site Agreement for the new location must comply with the Franchise Agreement, (ii) you must de-identify the former site, (iii) we may charge you a Relocation Fee (see Item 6), (iv) we may require you to pay an agreed minimum royalty to us during the period in which the Shop is not in operation, and (v) we may require you to sign our then-current Franchise Agreement (which may have materially different terms than your existing Franchise Agreement) or an amendment to your existing Franchise Agreement. If the term of the Lease for the new location extends beyond the term of your Franchise Agreement, we may, in our sole discretion, extend the term of your existing or new Franchise Agreement to match the term of the Lease for the new location, provided you will be required to pay the Relocation Extension Fee (see Item 6).
Source: Item 12 — TERRITORY (FDD pages 77–80)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, if a franchisee's request to relocate is approved, Auntie Anne's may charge a Relocation Fee. This fee is detailed in Item 6 of the FDD. Additionally, Auntie Anne's may require the franchisee to pay an agreed minimum royalty during the period the shop is not in operation during the relocation.
Furthermore, Auntie Anne's may require the franchisee to sign the then-current Franchise Agreement, which could have materially different terms than the existing agreement, or an amendment to the existing Franchise Agreement. This means that the franchisee could be subject to new or revised obligations and conditions as part of the relocation process.
If the lease term for the new location extends beyond the term of the current Franchise Agreement, Auntie Anne's may extend the term of the existing or new Franchise Agreement to match the lease term. In this case, the franchisee will be required to pay a Relocation Extension Fee, also detailed in Item 6. This ensures that the franchise agreement aligns with the lease duration of the relocated shop, but it comes at an additional cost to the franchisee.