What are the non-competition covenants during the term of the Auntie Annes franchise?

According to Auntie Annes's 2024 Franchise Disclosure Document, during the term of the franchise agreement, franchisees are subject to non-competition covenants. Specifically, franchisees are prohibited from involvement in any competitive business, which is generally defined as businesses offering products similar to Auntie Annes's approved products, anywhere.

This restriction means that as an Auntie Annes franchisee, you cannot own, operate, or be involved with any other business that sells similar products to Auntie Annes, regardless of the location. This is a standard practice in franchising to protect the brand and prevent franchisees from directly competing with the system.

Furthermore, the agreement specifies that franchisees may not divert or attempt to divert any business or potential business away from Auntie Annes. They are also prohibited from misusing vendor relationships or performing any action that could be harmful or prejudicial to the goodwill associated with Auntie Annes's proprietary marks and the overall system. This clause aims to ensure that franchisees remain fully committed to the success of their Auntie Annes franchise and do not engage in activities that could undermine the brand's reputation or profitability.