If a franchisee does not receive Goods from Auntie Annes, is this considered a breach of the Franchise Agreement?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
If you do not receive Goods from us, our affiliates, or our Approved Suppliers, this will not be our breach of the Franchise Agreement, nor will we, our affiliates, or our Approved Suppliers be liable to you for this. (Franchise Agreement, Section 7.1.B.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, if a franchisee does not receive goods from Auntie Annes, its affiliates, or its approved suppliers, it will not be considered a breach of the Franchise Agreement. Furthermore, Auntie Annes, its affiliates, or its approved suppliers will not be held liable for the franchisee not receiving these goods.
This clause protects Auntie Annes from liability if supply chain issues or other unforeseen circumstances prevent a franchisee from receiving necessary goods. However, Auntie Annes is expected to identify approved suppliers for all goods required to be used in the shop and use reasonable efforts to fulfill or cause approved suppliers to fulfill orders for goods on a timely basis.
This provision highlights the importance of having alternative suppliers and maintaining open communication with Auntie Annes and its approved suppliers to mitigate potential disruptions. Franchisees should proactively address any concerns regarding the supply of goods to ensure smooth business operations.