What does the Auntie Annes franchise agreement state regarding ownership of the System and Manuals?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
8. COMPLIANCE WITH THE SYSTEM AND MANUALS
8.1 Manuals. We will lend you one hard copy of, or grant you electronic or other access to, the Manuals during the Term. We may provide the Manuals, and any Supplements to the Manuals (defined below), to you in hard copy or electronically via applications for mobile devices, DVD,
intranet, other storage media, electronic mail, video, the Internet, or other electronic formats. If any content of the Manuals conflicts with the terms of this Agreement, this Agreement will control. You may be required to pay a license fee to use the software necessary to access the Manuals.
- 8.2 Compliance with the System.
You agree that: (i) every component of the System is vital to us, to your Franchised Business, and to the Businesses our other franchisees operate; and (ii) your compliance with the System is of the essence to this Agreement.
You therefore agree that you will conduct all activities and operations of your Franchised Business in strict compliance with the System, including the Standards and the Manuals, as though specifically stated in this Agreement.
You must promptly address any customer complaints in accordance with our Standards as specified in the Manuals.
- 8.3 Changes to the Standards and the Manuals.
We may make additions to, deletions from, and modifications to the Manuals ("Supplements") or Standards from time to time in any form or fashion, including (i) altering the Approved Products, accounting and computer systems, forms, policies, and procedures of the System; (ii) adding, modifying, or substituting the equipment, signs, trade dress, and other Business characteristics that you are required to use or display (subject to the limitations set forth in this Agreement); (iii) implementing new programs and policies, which may require you to incur additional expenses, purchase new equipment or supplies, or pay additional reasonable fees; and (iv) changing, improving, modifying, or substituting for the Marks.
We will communicate changes in the Standards or the Manuals in writing or electronically to you, as we deem appropriate.
You must immediately adopt and use any Supplements to the Manuals.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, Auntie Annes retains ownership of its System and Manuals. Auntie Annes will provide franchisees with access to the Manuals during the term of the franchise agreement, either as a hard copy or through electronic means such as mobile applications, DVDs, intranet, email, video, the Internet, or other electronic formats. Franchisees may need to pay a license fee to use the software required to access the manuals.
The Auntie Annes franchise agreement emphasizes that every component of the System is crucial for the success of the franchisee's business, Auntie Annes, and other franchisees. Compliance with the System, including the Standards and Manuals, is essential. Franchisees must conduct all activities and operations in strict compliance with the System as outlined in the agreement.
Auntie Annes has the right to modify the Manuals and Standards, including changes to approved products, accounting and computer systems, forms, policies, procedures, equipment, signs, and trade dress. Auntie Annes will communicate these changes in writing or electronically, and franchisees must immediately adopt and use any supplements to the Manuals. In case of any conflict between the Manuals and the Franchise Agreement, the Franchise Agreement will take precedence.