Is an Auntie Annes franchisee required to provide catering and delivery services?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
D. Section 4.3 (Catering and Delivery Services) of the Agreement is deleted in its entirety.
Services through a TPS that we approve or designate. If a TPS is unavailable to provide Delivery Services for your Franchised Business, you may not be required to offer Delivery Services, subject to our written approval. You acknowledge that we, our affiliates, and other franchisees may provide Catering Services and Delivery Services near your Franchised Business. We retain the right to revise and/or make exceptions to our Catering Services and Delivery Services policies as they apply to you and our other franchisees. We reserve the right to limit the geographic area in which you provide Catering Services and/or Delivery Services.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 84–86)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are not necessarily required to offer catering and delivery services. The Franchise Agreement includes a section (4.3) regarding catering and delivery services, but this section is deleted in its entirety for Concession Shops. This suggests that the standard requirement to provide these services may not apply to all franchise types.
However, for other Auntie Annes franchise locations, if a third-party service (TPS) is available and approved by Auntie Annes to provide delivery services, franchisees may be required to use that service. If a TPS is not available, a franchisee might not be required to offer delivery services, but this is subject to written approval from Auntie Annes.
Auntie Annes, its affiliates, and other franchisees retain the right to offer catering and delivery services near a franchisee's location. Auntie Annes also reserves the right to modify its policies regarding catering and delivery services and to limit the geographic area in which a franchisee can provide these services. This indicates that while franchisees may be permitted or even encouraged to offer these services, Auntie Annes maintains control over the broader catering and delivery strategy for the brand.