What is Auntie Annes's process for reviewing the location selected for a Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ds may delegate certain of these responsibilities to AA, the previous franchisor of Auntie Anne's franchises. However, we remain responsible for all of the support and services required under the Franchise Agreement.
Our Pre-Opening Obligations
Before you open your Shop, we will fulfill the following obligations:
1. Site Selection Review. We will review the location you select for your Shop and accept it if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it. If you and we have not agreed on an Accepted Location at the time we sign the Franchise Agreement, you must select a location that complies with our site selection criteria within a geographic area that we specify. For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics, and competitors within the market, and provide us with a copy of this analysis. We estimate the cost for this site selection analysis will be $2,500 to $5,000. We consider the following factors in determining whether to accept sites: population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, including other Shops. There is no time limit for us to approve or disapprove of a site. (Franchise Agreement, Section 5.1)
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 investigatio
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, the franchisor will review the location selected by the franchisee for their Shop. If the location meets Auntie Annes's minimum site criteria, it will be accepted and become the 'Accepted Location.' The franchisee cannot acquire the location until it has been accepted by Auntie Annes. If an Accepted Location is not agreed upon when signing the Franchise Agreement, the franchisee must select a location that complies with Auntie Annes's site selection criteria within a specified geographic area.
Auntie Annes may require the franchisee to obtain a site selection analysis from an Approved Supplier for any proposed site. This analysis, which may cost between $2,500 and $5,000, could include factors such as traffic patterns, demographics, and competitors. Auntie Annes considers factors such as population density and demographics, traffic flow, pedestrian traffic counts, visibility, parking, access, household income, and local competition, including other Shops, when determining whether to accept sites.
While Auntie Annes may assist in selecting a site, they are not obligated to do so. The document indicates that there is no specified time limit for Auntie Annes to approve or disapprove a site. The franchisee is expected to retain an independent expert to evaluate the suitability of a proposed site and conduct their own independent investigation. Auntie Annes disclaims any responsibility for the suitability of the Accepted Location, and their acceptance is based only on the site meeting their minimum criteria, not as a guarantee of success.