To whom can an Auntie Annes franchisee sell Approved Products?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
hemselves to our restrictive covenants and confidentiality obligations by signing our Personal Covenants Agreement (Schedule B to the Franchise Agreement). You must require all persons affiliated with you to sign a confidentiality agreement to keep our Confidential Information and Trade Secrets confidential (see Item 14).
All of your Owners must sign our Guaranty of Payment and Performance (Schedule C to the Franchise Agreement).
ITEM 16. RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You may offer in the Shop to customers only the Approved Products that we have approved in writing. You must produce and sell all Approved Products we specify, including all menu items, Trademarked Product Lines, and other products and services that we require you to sell, as stated
in the Manuals or otherwise, which are all part of the System. We may change these specifications periodically, without limitation, and we may designate specific Approved Products as optional or mandatory. You must offer all Approved Products that we designate as mandatory. If we require or authorize you to sell alcoholic beverages, you must obtain any necessary permits or licenses. You must maintain a sufficient supply of required Approved Products to meet the inventory standards we prescribe in the Manuals (or to meet reasonably anticipated customer demand, if we have not prescribed specific standards).
You may not use the Shop or the Accepted Location to produce or sell any goods, products, or services other than Approved Products sold using the Marks.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 84–86)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, franchisees can sell only Approved Products to customers within their shop. Auntie Anne's defines Approved Products as those items the franchisor has approved in writing.
Auntie Anne's requires franchisees to produce and sell all specified Approved Products, including menu items, Trademarked Product Lines, and other products and services outlined in the manuals or otherwise communicated as part of the Auntie Anne's system. The franchisor retains the right to modify these specifications periodically and may designate specific Approved Products as either optional or mandatory, with all mandatory products required to be offered by the franchisee.
The Auntie Anne's franchisee is restricted from using the shop's location to produce or sell any goods, products, or services other than the Approved Products sold under the Auntie Anne's Marks. Additionally, franchisees must strictly adhere to Auntie Anne's Recipes, using only approved components, ingredients, flavorings, and garnishes that meet the franchisor's standards. In dispensing the Approved Products, franchisees are required to use only containers, cartons, bags, boxes, napkins, and other paper goods and packaging bearing the approved text and designs that meet the franchisor's requirements, specifications, and quality standards.