What must an Auntie Annes franchisee do if they receive a notice of revocation of approval for a good or supplier?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
then-current criteria. If you receive a notice of revocation of approval, you agree to cease purchasing or leasing the formerly-approved Goods or any Goods from the formerly-approved Supplier and you must dispose of your remaining inventory of the formerly-approved Goods as we direct. If we revoke approval of a formerly-approved Approved Product that you have been selling to customers or service that you have been offering to customers, you must immediately discontinue offering the service and may continue to sell the product only from your existing inventory for up to 30 days following our disapproval. We have the right to shorten this period if, in our opinion, the continued sale of the product would prove detrimental to our reputation. After the 30-day period, or such shorter period that we may designate, you must dispose of your remaining formerly-approved inventory as we direct.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, if a franchisee receives a notice of revocation of approval for a good or supplier, they must immediately stop purchasing or leasing the formerly-approved goods from the formerly-approved supplier. The franchisee is also required to dispose of any remaining inventory of the formerly-approved goods as directed by Auntie Annes.
If Auntie Annes revokes approval of a product that the franchisee has been selling or a service they have been offering, the franchisee must immediately stop offering the service. They can continue to sell the product from their existing inventory for up to 30 days following the disapproval. However, Auntie Annes has the right to shorten this 30-day period if they believe that the continued sale of the product would be detrimental to their reputation.
After the 30-day period, or any shorter period designated by Auntie Annes, the franchisee must dispose of any remaining formerly-approved inventory as directed by Auntie Annes. This ensures that all franchisees adhere to the current standards and offerings of the Auntie Annes brand and that any potentially harmful or substandard products are removed from the market promptly.