For what purpose are the financial statements of GoTo Foods provided in the Auntie Annes FDD?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 31, 2023 and December 25, 2022. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 105–106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the audited financial statements of GoTo Foods are included for disclosure purposes only. GoTo Foods will provide required support and services to Auntie Anne's franchisees under a management agreement with the company.
GoTo Foods is not a party to the Franchise Agreement or any other agreements that Auntie Anne's signs with its franchisees. Additionally, GoTo Foods does not guarantee Auntie Anne's obligations under the Franchise Agreement or other agreements.
Prospective franchisees should understand that while GoTo Foods provides essential services to Auntie Anne's, it has no direct legal responsibility to the franchisee under the franchise agreement. This distinction is important for assessing the security and support structure of the franchise system.