What is an Auntie Annes franchisee required to sell from the SRU?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Lessee shall defend, at its own cost, and indemnify and hold harmless Lessor, its directors, officers, employees and agents, from and against any and all loss, claims, costs, expenses (including attorneys' fees), damages and liabilities, however caused resulting directly or indirectly from or pertaining to the use, condition, or construction, equipping, decorating, maintenance or operation of the SRU, including the sale of any food products, service or merchandise sold from the SRU, and from Lessee's default under this Agreement, the Franchise Agreement or any other agreement with Lessor.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes FDD, a franchisee operating a Satellite Retail Unit (SRU) must sell food products, services, or merchandise. The franchisee, as the lessee, is responsible for any losses, claims, costs, expenses, damages, and liabilities resulting directly or indirectly from the sale of these items from the SRU. This includes covering legal costs such as attorney's fees.
The FDD specifies that the franchisee must indemnify and hold harmless the franchisor (Lessor), its directors, officers, employees, and agents from any issues arising from the SRU's use, condition, construction, equipping, decorating, maintenance, or operation. This obligation extends to any default by the franchisee under the lease agreement, the Franchise Agreement, or any other agreement with the franchisor.
This arrangement means that Auntie Annes franchisees bear significant responsibility for the SRU's operation and any liabilities that may arise. It is important for prospective franchisees to understand the full scope of their obligations and potential risks associated with operating an SRU, including the costs of defending against claims and covering any damages or liabilities. Franchisees should consult with legal and financial advisors to fully assess these risks before entering into a franchise agreement.