If operating an Auntie Annes franchise as a Co-Branded Franchise, what other franchise must it be operated in conjunction with?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Section 1.1 (Grant of Franchise) is amended to add the following sentence:
The Franchised Business must be operated at the Accepted Location in conjunction with a [Cinnabon® ] [Jamba® ] franchised business (the "Co-Branded Franchise") that is operated by you in accordance with a [Cinnabon® ] [Jamba® ] franchise agreement (the "Co-Branded Agreement") between you and [Cinnabon Franchisor SPV LLC] [Jamba Franchisor SPV LLC] (the "Co-Branded Franchisor"). The Franchised Business and the Co-Branded Franchise shall be co-branded using the Marks and the trademarks licensed to you by the Co-Branded Franchisor.
B. Section 1.4 (Owners of Equity) is amended to add the following sentence:
You represent and warrant that the Franchisee and Owners under this Agreement are identical to, and throughout the Term will continue to be identical to, those under the Co-Branded Agreement.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, if a franchisee chooses to operate an Auntie Annes franchise as a Co-Branded Franchise, it must be operated in conjunction with either a Cinnabon or Jamba franchise. The Auntie Anne's franchise must be operated at the same location as the co-branded franchise.
The agreement between the franchisee and either Cinnabon Franchisor SPV LLC or Jamba Franchisor SPV LLC is referred to as the "Co-Branded Agreement." The Co-Branded Franchise and the Auntie Anne's franchise will be co-branded using the trademarks licensed to the franchisee by the Co-Branded Franchisor.
The FDD also states that the franchisee and owners under the Auntie Anne's Franchise Agreement must be identical to those under the Co-Branded Agreement. This means the ownership structure must be the same for both franchises.