For an Auntie Annes franchise, what is the deadline for site approval after the Effective Date?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
itectural Plans and (ii) begin the construction and equipping of the Franchised Business by the deadline specified in Schedule A (the "Construction Start Deadline").
- C. Opening Deadline. You must open the Franchised Business by the deadline specified in Schedule A (the "Opening Deadline"). You must notify us of your proposed Opening Date at least 30 days in advance. We have the right to inspect your Franchised Business and take other measures we deem appropriate to determine whether you have complied with our Standards and are ready to begin operations. You must not begin operations until we authorize you to do so in writing.
- D. Failure to Meet Deadlines. If you are unable to meet the Site Approval Deadline, the Construction Start Deadline, or the Opening Deadline, you may request an extension before the expiration of any missed deadline. We have the right to require you to pay a $2,500 extension fee, if we agree to modify (or if you miss) any of the deadlines. We are not obligated to extend any deadlines. If (i) you fail to cure your failure to meet the Site Approval Deadline or the Construction Start Deadline within 30 calendar days after we send you notice of such default or (ii) you do not meet the Opening Deadline, we may terminate this Agreement, as provided in Sections 17.2.I and 17.3.J.
7. GOODS AND SERVICES
7.1 Purchases.
- A. Goods You Purchase.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, the deadline for site approval is specified in Schedule A of the Franchise Agreement. If a franchisee fails to meet the Site Approval Deadline, Auntie Annes may send a notice of default.
If the franchisee fails to cure the failure to meet the Site Approval Deadline within 30 calendar days after receiving notice of such default from Auntie Annes, Auntie Annes has the right to terminate the Franchise Agreement.
For franchisees pursuing a Multi-Unit Addendum, Appendix B outlines the Development Schedule, which specifies Site Approval Deadlines for each MUA Business. Failing to meet these deadlines, including having the minimum number of sites approved by each Site Approval Deadline, may result in Auntie Annes terminating the MU Addendum and related MUA Franchise Agreements for unopened franchised businesses.
Prospective franchisees should carefully review Schedule A of the Franchise Agreement and Appendix B of the Multi-Unit Addendum to understand the specific Site Approval Deadlines applicable to their situation and the potential consequences of failing to meet those deadlines.