If an Auntie Annes franchisee desires to make a transfer, what is the first step they must take?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Accordingly, neither you nor any of the Owners or any successors to any part of your interest in this Agreement or the license may make any Transfer or permit any Transfer to occur without obtaining our prior written consent.
Any purported Transfer, without our prior written consent, will be null and void and will constitute a default under this Agreement, for which we may terminate this Agreement without opportunity to cure.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, the first step is to obtain prior written consent from Auntie Anne's. The franchise agreement and license are personal to the franchisee, and Auntie Anne's has granted the license based on the franchisee's business skill, financial capacity, and personal character. Therefore, neither the franchisee nor any owners or successors can make any transfer without this consent.
This requirement applies to any sale, assignment, gift, transfer, pledge, mortgage, or encumbrance of any interest in the agreement, the franchised business, or the ownership of the franchisee. This includes both voluntary transfers and those that occur by operation of law, such as through divorce or bankruptcy proceedings.
Any transfer made without Auntie Anne's prior written consent is considered null and void and constitutes a default under the franchise agreement. This default allows Auntie Anne's to terminate the agreement without providing an opportunity for the franchisee to cure the breach. Therefore, it is critical for any Auntie Anne's franchisee considering a transfer to first seek and obtain written consent from Auntie Anne's to avoid potential termination of the franchise agreement.