Can an Auntie Annes franchisee operate any other business from the Accepted Location besides the Auntie Annes Franchised Business?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
y.
If you obtain a claims made policy, you must provide a tail coverage policy for no less than one year after the expiration or termination of this Agreement or the closure of the Franchised Business, whichever occurs first. The tail coverage limits must be equal to, or greater than, the limits provided in the prior policy.
18. Section 15.4 (Restrictive Covenants):
A "Competing Product" includes any soft pretzels or soft-pretzel-based products.
19. Section 20.5 (Notices):
The notice address for the Franchisor shall be:
Auntie Anne's Franchisor SPV LLC, 5620 Glenridge Drive, NE, Atlanta, Georgia 30342, Attention: Legal Department
The notice address for the Franchisee shall be: «C1_contact_street», «C1_contact_city», «C1_contact_state» «C1_contact_zip».
- 20. Section 22.11 (Additional Terms; Inconsistent Terms): The following additional terms amend the applicable Sections of the Agreement:
- 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.
- C.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the ability to operate another business from the same location as an Auntie Anne's franchise depends on the specific type of franchise agreement. For a standard franchise, the franchisee is generally expected to operate only the Auntie Anne's business from the approved location. However, Auntie Anne's does offer co-branding opportunities where the Auntie Anne's franchise is operated in conjunction with another franchise such as Cinnabon or Jamba.
For franchisees considering a co-branded location, the FDD stipulates that the franchisee and owners must be identical to those under the co-branded agreement, ensuring consistent management and ownership across both franchises. The co-branded franchises will use the trademarks licensed by both franchisors. This arrangement requires adherence to both the Auntie Anne's franchise agreement and the co-branded agreement, indicating a more complex operational structure but allowing for diversified revenue streams from a single location.
For franchisees operating a Concession Shop (concession trailer or food truck), Auntie Anne's may allow operation from multiple approved locations. However, this is subject to written approval from Auntie Anne's, which can be withheld at their discretion. Auntie Anne's typically does not approve operation of a Concession Shop within a two-mile radius of an existing permanent Auntie Anne's franchise. This indicates that while some flexibility exists for mobile units, it is still subject to franchisor oversight and market considerations to avoid cannibalization of existing franchise locations.