Are Auntie Annes franchisees required to purchase components of the Computer System from Approved Suppliers?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to purchase most of the components of the Computer System that we specify from Approved Suppliers. Currently, we have Approved Suppliers for our POS System and for certain software that you must use in your Shop, including the Learning Management System. We also require you to use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions (hardware and software) that are used in cooperation with your POS System to provide secure and compliant payment processing services. If we require you to use any proprietary software or to purchase any software from a designated vendor, you must execute any software license agreements that we or the licensor of the software require and any related software maintenance agreements. We may require you to maintain certain network connections, which may include using an Internet Service Provider or other communications provider that we approve or designate. Currently, we require you to obtain the POS System from our designated vendor (and we may collect from you the related upfront and ongoing fees for such POS System and pay the vendor on your behalf) and POS System support services from our affiliate. We may require you to maintain other support service contracts and/or maintenance service contracts from us, our affiliates, or designated Approved Suppliers.
We require you to accept major credit cards (Visa, MasterCard, American Express, and Discover) for customer purchases, participate in our Gift Card and Loyalty Programs, and participate in our in-shop mobile and online ordering program. These programs may require that you invest in
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 54–59)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are generally required to purchase most components of their Computer System from Approved Suppliers. Currently, Auntie Annes has Approved Suppliers for the POS System and certain software, including the Learning Management System. Franchisees must also use designated Approved Suppliers for point-to-point encryption ("P2PE") solutions, which include both hardware and software used with the POS System for secure payment processing.
Auntie Annes requires franchisees to obtain the POS System from their designated vendor and may collect upfront and ongoing fees to pay the vendor on the franchisee's behalf. Additionally, franchisees may be required to maintain other support service contracts and maintenance service contracts from Auntie Annes, its affiliates, or designated Approved Suppliers. These requirements ensure that all locations use compatible and secure systems for transactions and operations.
Franchisees are also obligated to accept major credit cards, participate in the Gift Card and Loyalty Programs, and participate in the in-shop mobile and online ordering program. These programs may necessitate additional equipment investments and incur fees from credit card processing vendors, gift card processing vendors, and other hardware and software vendors designated by Auntie Annes. These requirements ensure uniformity and integration across all Auntie Annes locations, but franchisees should be aware of the potential costs and restrictions associated with these mandated systems and vendors.