How long is the initial term of the Auntie Annes Franchise Agreement, assuming it is not terminated early?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
B. Section 2.1 (Initial Term) of the Agreement is deleted in its entirety and replaced with the following:
Term. The term of this Agreement (the "Term") will begin on the Effective Date and will end 10 years from the date that your Franchised Business opens for business (the "Opening Date"), unless this Agreement is terminated sooner as provided in other sections of this Agreement.
- C. Section 2.2 (Renewal Term) of the Agreement is deleted in its entirety.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the initial term of the Franchise Agreement is 10 years. Specifically for Concession Shops, the term begins on the effective date of the agreement and ends 10 years from the date the franchised business opens, unless the agreement is terminated earlier as per other sections of the agreement.
This 10-year term is a defined period during which the franchisee has the right to operate an Auntie Annes franchise, provided they comply with the terms and conditions of the Franchise Agreement. It's important to note that this term can be cut short if Auntie Annes terminates the agreement due to a breach by the franchisee.
Unlike some franchise systems, the standard Auntie Annes franchise agreement for a Concession Shop does not include a renewal term. This means that at the end of the initial 10-year term, the franchisee does not have an automatic right to extend the agreement. If a franchisee wishes to continue operating the Auntie Annes business after the initial term, they would need to negotiate a new agreement with Auntie Annes, which may or may not be granted.