Must the Primary Contact for an Auntie Annes franchise be an Owner?
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.
After a Primary Contact's, Manager's, or Director of Operation's death, disability, or termination of employment, you must immediately notify us, and you must designate a successor or acting Primary Contact, Manager or Director of Operations within 30 days. If you fail to do so after receiving from us a default notice with a cure period, we can terminate the Franchise Agreement.
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, while the franchisee is required to appoint a Primary Contact for the Shop, this individual is not required to be an owner. The Primary Contact must have decision-making authority regarding the Shop and its operation and must complete Primary Contact Training to Auntie Anne's satisfaction. Auntie Anne's must provide prior written approval for the appointment, removal, or replacement of the Primary Contact.
Furthermore, the franchisee must have at least two Managers dedicated to the Shop, who have day-to-day management responsibility, exercise on-premises supervision, and personally participate in the direct operation of the Shop. These Managers are also not required to be owners but must complete the Management Training Program. If a franchisee operates four or more Shops, Auntie Anne's may require the franchisee to hire one or more additional Managers to serve as a Director of Operations.
It is important to note that Auntie Anne's does not recommend investing in a Shop for those interested in an absentee management business. If a Primary Contact's, Manager's, or Director of Operation's employment is terminated, the franchisee must notify Auntie Anne's immediately and designate a successor within 30 days.