Can an Auntie Annes franchisee serve as the Primary Contact for the Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
You must identify an individual, who is reasonably acceptable to us, to serve as your "Primary Contact." If we consent, your Primary Contact may be you, if you are an individual, or an Owner, if you are an Entity. The Primary Contact will be empowered with the responsibility and decisionmaking authority regarding the Shop and its operation, and we will have the right to rely upon the Primary Contact for such purposes.
In addition, you must appoint at least two full-time managers of your Shop (each, a "Manager"). All of your Managers must successfully complete our initial management training program (the "Management Training Program") to our satisfaction. We may, in our sole discretion, permit your Primary Contact to serve as a Manager for the Shop, provided that it is their full-time job, they otherwise qualify for the position, and they successfully complete the Management Training Program.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 84)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a franchisee can serve as the Primary Contact for the shop, but it is conditional. If the franchisee is an individual, or an Owner if the franchisee is an Entity, they may serve as the Primary Contact with Auntie Annes's consent.
The Primary Contact is responsible for the shop's operation and has decision-making authority. Auntie Annes must find the designated individual reasonably acceptable. The franchisee must also appoint at least two full-time managers who complete the initial management training program. Auntie Anne's may allow the Primary Contact to also serve as a Manager if it is their full-time job, they otherwise qualify, and they complete the Management Training Program.
However, Auntie Annes does not recommend that investors interested in absentee management invest in a shop. The franchisee must get written approval from Auntie Annes before they appoint, remove, or replace the Primary Contact. The Primary Contact must also complete Primary Contact Training to Auntie Annes's satisfaction.