Does the Auntie Annes franchise agreement include a 'State Law Addendum', and if so, where can I find it?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 22. CONTRACTS
The following contracts and related documents are attached to this Disclosure Document.
EXHIBIT B AUNTIE ANNE'S FRANCHISE AGREEMENT AND RELATED AGREEMENTS:
Schedule A - Franchise Specific Terms
Schedule B - Personal Covenants
Schedule C - Guaranty of Payment and Performance Schedule D - State Law Addendum (If Required)
Schedule E - Multi-Unit Addendum
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the franchise agreement does include a 'State Law Addendum' if required. Specifically, Exhibit B of the FDD includes the Auntie Anne's Franchise Agreement and related agreements, with Schedule D designated for the State Law Addendum. This indicates that depending on the state where the franchise is being established, an addendum addressing specific state laws may be included as part of the franchise agreement.
Several states, including California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, Virginia, and Washington, have addenda to the Auntie Annes Disclosure Document. These addenda address specific legal requirements and potential conflicts between the standard franchise agreement and state laws. For example, the California addendum clarifies issues related to termination, transfer, dispute resolution, non-compete clauses, and waivers of rights under California law. Similarly, other state addenda address issues such as limitations on fees, governing law, and franchisee rights.
For a prospective franchisee, this means that the Auntie Annes franchise agreement is not a one-size-fits-all document. It is tailored to incorporate state-specific legal considerations. Franchisees should carefully review the State Law Addendum (if any) applicable to their state to understand their rights and obligations under the franchise agreement, as certain provisions of the standard agreement may be superseded or modified by state law. Consulting with an attorney experienced in franchise law is advisable to fully understand the implications of these addenda.