Is Auntie Annes obligated to assist in selecting a proposed site?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
While we may assist you in selecting a proposed site, we are not obligated to do so. We or our affiliates typically do not lease or sublease locations for Shops, but we may do so from time to time. (Franchise Agreement, Section 5.2)
We expect you to retain an independent expert to evaluate the suitability of a proposed site and to conduct your independent investigation of the site. We disclaim any responsibility for the suitability of the Accepted Location. Our acceptance of the site is based on the site satisfying our minimum site selection criteria only and will not be construed as a representation or warranty that the Shop located at the Accepted Location will be successful. (Franchise Agreement, Section 5.3)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, while they may offer assistance in site selection, they are not obligated to do so. The franchisee is expected to conduct their own independent investigation and evaluation of potential sites with the help of an independent expert. Auntie Annes disclaims any responsibility for the suitability of the location.
However, Auntie Annes does retain some control over the site selection process. The franchisee must select a location that meets Auntie Anne's minimum site criteria within a specified geographic area. Auntie Anne's will review the franchisee's chosen location and must accept it before it becomes the 'Accepted Location'. Auntie Anne's considers factors such as population density, traffic flow, visibility, parking, household income, and local competition when determining whether to accept a site.
For any proposed site, Auntie Anne's may require the franchisee to obtain a site selection analysis from an approved supplier, which could cost between $2,500 and $5,000. The analysis may include factors such as traffic patterns, demographics, and competitors. The document does not specify a time limit for Auntie Anne's to approve or disapprove a site.