Is GoTo Foods a party to other agreements that Auntie Annes signs with franchisees?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
For value received, GoTo Foods Systems LLC, a Delaware limited liability company (the "Guarantor"), located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342, absolutely and unconditionally guarantees to assume the duties and obligations of Auntie Anne's Franchisor SPV LLC, located at 5620 Glenridge Drive NE, Atlanta, Georgia 30342 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2024 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This Guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
The Guarantor signs this guarantee at Atlanta, Georgia on this 29th day of March 2024.
Guarantor:
GOTO FOODS SYSTEMS LLC
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 105–106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, GoTo Foods is a party to other agreements that Auntie Anne's franchisees may sign. Specifically, GoTo Foods Systems LLC provides a guarantee of performance, ensuring that it will assume the duties and obligations of Auntie Anne's Franchisor SPV LLC under the franchise registration and the Franchise Agreement. This guarantee remains in effect until all obligations of Auntie Anne's Franchisor SPV LLC are satisfied or the liability to its franchisees is completely discharged.
This guarantee means that GoTo Foods is legally bound to ensure that Auntie Anne's fulfills its obligations to franchisees. This arrangement provides an added layer of security for franchisees, as they have recourse to GoTo Foods should Auntie Anne's fail to meet its commitments. The guarantee is signed by Michael J. Dixon, Chief Financial Officer of GoTo Foods Systems LLC, on March 29, 2024, indicating a formal and legally binding agreement.
Furthermore, the acknowledgement form that franchisees sign includes an email address at GoTo Foods. This form is meant to determine whether any unauthorized statements or promises were made to the franchisee. If a franchisee finds that a statement is not accurate and true, they are instructed to email Tim Goodman, Senior Vice President of Franchise Administration, at tgoodman@gotofoods.com. This shows that GoTo Foods is involved in the communication and oversight of the franchise agreement.