For Auntie Annes, what happens in the event of a conflict between the SRU Lease Agreement and the Franchise Agreement?

According to Auntie Annes's 2024 Franchise Disclosure Document, the terms of the Franchise Agreement will govern in the event of a conflict between the SRU Lease Agreement and the Franchise Agreement. The SRU, or Satellite Retail Unit, is leased to the franchisee (Lessee) by Auntie Anne's as franchisor (Lessor). The rights to lease the SRU are subject to the terms of the Franchise Agreement.

This means that if there's a disagreement or contradiction between what's written in the SRU Lease Agreement and the Franchise Agreement, the Franchise Agreement takes precedence. This is important for a prospective franchisee to understand because it clarifies which document holds more weight in governing the relationship and operations of the franchise. Franchisees should therefore pay close attention to the terms of the Franchise Agreement, as it ultimately dictates the rules of the franchise relationship with Auntie Annes.

This clause is fairly standard in franchising, as the franchise agreement is the core document outlining the relationship between the franchisor and franchisee. It is crucial for prospective Auntie Annes franchisees to carefully review both the SRU Lease Agreement and the Franchise Agreement to understand their rights and obligations, and to be aware of which agreement will take precedence in case of a conflict.