Must the Managers of an Auntie Annes franchise be Owners?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
You are required to devote your best efforts to the proper and effective operation of the Shop. You (if you are an individual) and your Owners (if you are an Entity) are not required to participate in the actual operation of the Shop but may, with our consent, serve as the Primary Contact and/or a Manager. However, we do not recommend an investment in a Shop for investors interested in an absentee management business.
You must appoint a Primary Contact who will be responsible for, and have decision-making authority regarding, the Shop and its operation. You may not appoint, remove, or replace the Primary Contact without our prior written approval. Your Primary Contact may be (but is not required to be) an Owner. Your Primary Contact must successfully complete Primary Contact Training to our satisfaction. We may, in our sole discretion, permit your Primary Contact to serve as a Manager for the Shop, provided that it is their full-time job, they otherwise qualify for the position, and they successfully complete the Management Training Program.
You must have at least two Manager that are dedicated to your Shop. Your Managers must have day-to-day management responsibility for your Shop, exercise on-premises supervision, and personally participate in the direct operation of the Shop. Your Managers may be (but are not required to be) an Owner. Your Managers must complete the Management Training Program to our satisfaction. You must inform us in writing of the identity of your Managers and any successor Managers.
If you operate four or more Shops, we may require you to hire one or more additional Managers to serve as a Director of Operations to provide additional support and supervision to multiple Shops. Your Directors of Operations must meet any minimum standards for such position and must complete the Management Training Program and any other training programs that we specify to our satisfaction.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 84)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are not required to have the managers of their shops be owners. While not mandatory, the FDD states that managers can be owners.
The Auntie Annes franchise agreement stipulates that franchisees must dedicate their best efforts to the shop's operation. If the franchisee is an individual, they are not required to participate in the shop's daily operation but can serve as the Primary Contact or Manager with the franchisor's consent. However, Auntie Annes does not recommend investing in a shop for those interested in absentee management.
The franchisee must appoint a Primary Contact with decision-making authority, subject to Auntie Annes's approval. The Primary Contact may, but is not required to be, an owner and must complete Primary Contact Training. Additionally, franchisees must have at least two Managers with day-to-day management responsibilities and on-premises supervision. These Managers also may be owners, but it is not a requirement. Managers must complete the Management Training Program. If a franchisee operates four or more shops, Auntie Annes may require them to hire a Director of Operations to provide additional support.