What is the geographic scope of the post-term restrictive covenants for an Auntie Annes franchisee?

The 2024 Auntie Annes Franchise Disclosure Document does not specify the geographic scope of the post-term restrictive covenant for most franchisees. However, it does state that for franchises sold in Indiana, Section 15.4.B of the Franchise Agreement is revised to limit the geographical extent of the post-term covenant to an area of reasonable size.

For prospective Auntie Annes franchisees outside of Indiana, it is important to note that the FDD does not provide specific details regarding the geographic scope of the post-term restrictive covenant. This means that the restriction could potentially cover a broad area, which could significantly limit your ability to operate a similar business after the franchise agreement ends.

Therefore, it is crucial for potential franchisees to carefully review Section 15.4.B of the Franchise Agreement and seek clarification from Auntie Annes regarding the specific geographic limitations of the post-term covenant in their specific state or region. Understanding this scope is essential for making an informed decision about investing in an Auntie Annes franchise and planning for future business ventures after the franchise term.