What is the Lessee required to do with the SRU in the event of termination of the Auntie Annes SRU Agreement?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- d.
In the event of termination, the SRU must be returned to Lessor or Lessor's designee in a manner designated by Lessor.
Lessee shall be liable for all costs incurred in shipping the SRU to its prescribed destination.
Lessee shall be required to pay Lessor's direct expenses in disassembling and removing the SRU from the Location.
Such expenses shall be at Lessor's then-current daily training service fee.
- e.
Lessee hereby authorizes Lessor to remove the SRU in whole or in part and any materials associated therewith upon termination of this Agreement and it is further agreed that such removal shall not constitute a waiver of the rights of Lessor to collect any charges which have accrued or may accrue hereunder.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, in the event of termination of the SRU Agreement, the lessee is required to return the Satellite Retail Unit (SRU) to the lessor or the lessor's designee in a manner designated by the lessor. The lessee is responsible for all costs associated with shipping the SRU to the location specified by the lessor.
Furthermore, the lessee is liable for the direct expenses incurred by Auntie Anne's in disassembling and removing the SRU from its location. These expenses will be calculated based on the lessor's then-current daily training service fee. Auntie Anne's is authorized to remove the SRU, either in whole or in part, along with any associated materials, upon termination of the agreement. This removal does not waive the lessor's rights to collect any charges that have accrued or may accrue under the agreement.
In practical terms, this means that if an Auntie Anne's franchisee's SRU agreement is terminated, they must ensure the SRU is returned according to Auntie Anne's instructions, covering all shipping and disassembly costs. This could potentially involve significant expenses for the franchisee, depending on the distance the SRU needs to be shipped and the complexity of its disassembly. The franchisee should clarify what the 'then-current daily training service fee' is, as this will determine the cost of disassembly and removal. It is also important to note that Auntie Anne's retains the right to collect any outstanding charges even after the SRU has been removed.