Is an Auntie Annes franchisee allowed to acquire a location before it is accepted by the franchisor?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ds may delegate certain of these responsibilities to AA, the previous franchisor of Auntie Anne's franchises. However, we remain responsible for all of the support and services required under the Franchise Agreement.
Our Pre-Opening Obligations
Before you open your Shop, we will fulfill the following obligations:
1. Site Selection Review. We will review the location you select for your Shop and accept it if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it. If you and we have not agreed on an Accepted Location at the time we sign the Franchise Agreement, you must select a location that complies with our site selection criteria within a geographic area that we specify. For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics, and competitors within the market, and provide us with a copy of this analysis. We estimate the cost for this site selection analysis will be $2,500 to $5,000. We consider the following factors in determining whether to accept sites: population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, inclu
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a franchisee is not allowed to acquire a location for their shop until Auntie Annes has reviewed and accepted it. The location, once approved, becomes the "Accepted Location."
If a franchisee and Auntie Annes have not agreed on a location when the Franchise Agreement is signed, the franchisee must find a location that meets Auntie Annes's site selection criteria within a specified geographic area. Auntie Annes may require the franchisee to obtain a site selection analysis from an Approved Supplier, which could cost between $2,500 and $5,000.
Auntie Annes considers factors such as population density, traffic flow, visibility, parking, household income, and local competition when determining whether to accept a site. The FDD does not specify a time limit for Auntie Annes to approve or disapprove a site. While Auntie Annes may assist in site selection, they are not obligated to do so and typically do not lease or sublease locations for shops.