What must an Auntie Annes franchisee do if they wish to co-brand the Franchised Business with another business?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
A. Section 1.1 (Grant of Franchise) is amended to add the following sentence:
The Franchised Business must be operated at the Accepted Location in conjunction with a [Cinnabon® ] [Jamba® ] franchised business (the "Co-Branded Franchise") that is operated by you in accordance with a [Cinnabon® ] [Jamba® ] franchise agreement (the "Co-Branded Agreement") between you and [Cinnabon Franchisor SPV LLC] [Jamba Franchisor SPV LLC] (the "Co-Branded Franchisor"). The Franchised Business and the Co-Branded Franchise shall be co-branded using the Marks and the trademarks licensed to you by the Co-Branded Franchisor.
B. Section 1.4 (Owners of Equity) is amended to add the following sentence:
You represent and warrant that the Franchisee and Owners under this Agreement are identical to, and throughout the Term will continue to be identical to, those under the Co-Branded Agreement.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the Franchised Business must be operated in conjunction with a Cinnabon or Jamba franchised business. The franchisee must have a franchise agreement with either Cinnabon Franchisor SPV LLC or Jamba Franchisor SPV LLC, referred to as the "Co-Branded Franchisor." The Auntie Annes franchise and the co-branded franchise must operate together using the trademarks licensed by both Auntie Annes and the Co-Branded Franchisor.
Furthermore, the franchisee and owners under the Auntie Annes agreement must be identical to those under the Co-Branded Agreement. This means the ownership structure must be consistent across both franchises.
In practical terms, this means that if you are considering an Auntie Annes franchise, you may be required to also operate a Cinnabon or Jamba franchise at the same location. This would involve entering into a separate franchise agreement with the corresponding franchisor and adhering to their specific requirements in addition to those of Auntie Annes. This co-branding arrangement necessitates careful coordination and compliance with both franchise systems to ensure efficient and harmonious operations.