What is a prohibited action related to acquiring the Accepted Location for an Auntie Annes franchise?
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
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, a prospective franchisee is prohibited from acquiring a location for their shop before Auntie Annes has officially accepted it. This means that before signing any lease or purchase agreement, the franchisee must first have the location reviewed and approved by Auntie Annes.
This requirement ensures that all Auntie Annes locations meet the brand's minimum site criteria, which considers factors such as population density, traffic flow, visibility, parking, household income, and local competition. Auntie Annes may also require the franchisee to obtain a site selection analysis from an approved supplier, costing an estimated $2,500 to $5,000, to aid in the evaluation process.
The implication for franchisees is that they must factor in the time required for site selection review and approval by Auntie Annes before finalizing any location agreements. Failure to adhere to this process could result in the rejection of the site and potential delays in opening their Auntie Annes franchise. While Auntie Annes may assist in site selection, they are not obligated to do so, and the franchisee is ultimately responsible for ensuring the suitability of the location.