Does Auntie Annes have an obligation to provide any payment to a franchisee or any other person with respect to any Innovations created related to the Auntie Annes system?

According to Auntie Annes's 2024 Franchise Disclosure Document, any innovations related to the Auntie Annes system that a franchisee or their employees create become the sole and exclusive property of Auntie Annes. These innovations are considered part of the Auntie Annes system and are classified as works made for hire.

Specifically, Auntie Annes is not obligated to provide any payment or compensation to the franchisee or any other person for these innovations. This means that if a franchisee develops a new method, idea, or material related to the Auntie Annes shop or system, Auntie Annes owns it without having to pay for it.

This policy has significant implications for prospective franchisees. While franchisees may be encouraged to improve or innovate within their Auntie Annes business, they will not receive any direct financial benefit from those innovations if they are adopted by the wider Auntie Annes system. Furthermore, franchisees are prohibited from using any innovation without prior approval from Auntie Annes.