Can an Auntie Annes franchisee conduct any business other than the franchised business from the Accepted Location?

According to the 2024 Auntie Annes Franchise Disclosure Document, under Section 22.11, an Auntie Anne's franchisee may operate their franchised business in conjunction with a Cinnabon or Jamba franchise, referred to as a "Co-Branded Franchise." This co-branded operation must be run in accordance with a separate franchise agreement with Cinnabon Franchisor SPV LLC or Jamba Franchisor SPV LLC, the "Co-Branded Franchisor." The Auntie Anne's franchise and the co-branded franchise must both utilize the trademarks licensed by Auntie Annes and the Co-Branded Franchisor.

This co-branding arrangement requires that the franchisee and owners of the Auntie Anne's franchise are identical to those under the Co-Branded Agreement. This means the ownership and management structure must be consistent across both franchises. The agreement also stipulates that Auntie Anne's will collect an advertising contribution based on the net sales attributable to Auntie Anne's products, while the Co-Branded Franchisor will collect advertising fees based on the net sales attributable to their products. Both franchisors must mutually agree on how net sales are credited to each brand.

For franchisees considering a co-branded location, it's crucial to understand the obligations and responsibilities under both franchise agreements. This includes adhering to the standards and operational requirements of both Auntie Anne's and the co-branded franchise. Additionally, franchisees should carefully review the terms regarding advertising contributions and ensure they have a clear understanding of how net sales will be allocated between the two brands. Operating a co-branded franchise can offer potential benefits, such as shared resources and increased customer traffic, but it also requires careful management and coordination to ensure the success of both businesses.