factual

What is Auntie Annes' obligation regarding a franchisee's request to relocate their franchised business?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

r will be the master lessee of such site. As part of such sublease, you will be required to pay us our then-current sublease administration fee. However, unless we have agreed otherwise in a separate written agreement, we shall have no obligation to enter into a sublease with you for any location. If we and you are parties to a sublease and we elect to assign the master lease to you, you must execute any and all documents required by the landlord to facilitate such assignment and cooperate with our efforts to obtain our release. Any real estate and improvement costs associated with the development of the Accepted Location will be your responsibility.

5.5 Relocation of the Franchised Business.

  • A. Relocation Request. You may relocate the Accepted Location of the Franchised Business at your expense, if, prior to closing the Franchised Business, you submit a site acceptance request (in the form we provide to you) for your new Proposed Location and obtain our acceptance of the relocation to the Proposed Location. A relocation includes any change of the location of the Franchised Business within a mall, facility, or building to a new location within the same mall, facility, or building. We are under no obligation to approve a relocation of the Franchised Business. Approval under this Section 5.5 will be within our sole discretion, and such approval shall not be granted unless you are in compliance with all terms and conditions of this Agreement and you have the funds available to relocate the Franchised Business and construct a new Franchised Business according to our then-current design standards.
  • B. Relocation Conditions.

Source: Item 22 — CONTRACTS (FDD page 106)

What This Means (2024 FDD)

According to Auntie Annes' 2024 Franchise Disclosure Document, Auntie Annes is under no obligation to approve a relocation of the franchised business. The decision to approve a relocation is at Auntie Annes' sole discretion.

To request a relocation, a franchisee must submit a site acceptance request for the new proposed location before closing the franchised business. The franchisee is responsible for all expenses associated with the relocation. A relocation includes any change of location within the same mall, facility, or building.

If Auntie Annes approves the relocation, the new location will be considered the "Accepted Location" under the Franchise Agreement, and all site agreements must comply with the requirements outlined in Section 5.4 (Site Acquisition) of the agreement. Approval will not be granted unless the franchisee is in compliance with all terms and conditions of the agreement and has the funds available to relocate and construct a new franchised business according to Auntie Annes' then-current design standards.

For streetside locations, if a franchisee relocates, Auntie Annes will specify a new Area of Protection for the new location.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.