When does the initial term of the Support Services Agreement for Auntie Annes commence and end?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- a. The initial term of this Agreement shall commence on the Effective Date and end on the last day of the same calendar year as the Effective Date (the "Initial Term"). Thereafter, this Agreement shall renew automatically for successive one-year terms, commencing on January 1 of each calendar year (each, a "Renewal Term"), unless earlier terminated as provided in this Agreement.
- b. This Agreement shall terminate immediately with respect to the Franchised Business upon the effective date of the termination or expiration of the Franchise Agreement for the Franchised Business.
- c. Company may terminate this Agreement for any reason or for no reason by giving written notice of such termination to Franchisee at least sixty (60) day prior to the effective date of such termination.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the initial term of the Support Services Agreement begins on the Effective Date and concludes on the last day of the same calendar year as the Effective Date. After the initial term, the agreement automatically renews for successive one-year terms, starting on January 1 of each calendar year, unless terminated earlier as specified in the agreement.
This means that if a franchisee signs the Support Services Agreement in July, the initial term would only last until December 31 of that year. Subsequently, the agreement would renew each January 1 for another year, provided that neither the franchisee nor Auntie Anne's terminates it. This structure ensures that the agreement remains current and allows for periodic review and potential adjustments.
Auntie Anne's can terminate the Support Services Agreement for any reason by providing the franchisee with a written notice at least sixty days before the termination date. The agreement also terminates immediately if the Franchise Agreement for the Franchised Business is terminated or expires. This ensures that the Support Services Agreement remains aligned with the status of the underlying franchise agreement.