If an Auntie Annes franchisee leases an SRU, how long are they responsible for lease payments?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We, in our sole discretion and subject to availability, may grant to qualified franchisees the right to lease and operate an SRU as an additional selling location within the mall, airport, enclosed building or other retail location where an existing Shop is located. Such lease is controlled by the terms of the SRU Lease Agreement. Participating franchisees are responsible for lease payments for a period of at least 12 months. See Items 6 and 8.
Source: Item 10 — FINANCING (FDD page 61)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, franchisees participating in the SRU program are responsible for lease payments for a minimum of 12 months. This applies when Auntie Anne's grants qualified franchisees the right to lease and operate a Satellite Retail Unit (SRU) as an additional selling location. The specific terms of the lease are governed by the SRU Lease Agreement.
If a franchisee chooses to terminate the SRU Addendum and SRU Lease Agreement, they must provide Auntie Anne's with two weeks' written notice. However, if the termination occurs within the first 12 months of the agreement, the franchisee remains responsible for rental payments through the entirety of that initial 12-month period.
This condition creates a financial obligation for the franchisee, as they must continue to pay rent for the SRU even if they cease operations at that location before the first year is complete. This policy is designed to protect Auntie Anne's investment in the SRU and ensure a stable revenue stream for the initial term of the lease. Prospective franchisees should carefully consider this commitment before entering into an SRU Lease Agreement.