What representation does a prospective Auntie Annes franchisee make regarding affiliation with competing businesses?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
The undersigned represents and warrants that he/she is not employed by or in any way affiliated with or connected to, directly or indirectly, any other person or company that produces or sells products that compete with the products sold at Auntie Anne's shop or that otherwise competes with Auntie Anne's shops. The undersigned further represents and warrants that he/she is not submitting a franchise application to the Franchisor for the purpose of obtaining information about the Auntie Anne's franchise system for or on
behalf of any other person or company. The undersign has or will disclose to Franchisor all businesses that he/she is in any way affiliated with or connected to, directly or indirectly.
The undersigned agrees to indemnify and hold Auntie Anne's harmless from any and all costs, expenses, damages and attorneys' fees arising from or related to the undersigned's breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, a prospective franchisee must represent and warrant that they are not employed by, affiliated with, or connected to any person or company that competes with Auntie Annes. This includes companies that produce or sell products that compete with those sold at Auntie Anne's shops or that otherwise compete with Auntie Anne's shops.
Furthermore, the prospective franchisee must also represent and warrant that they are not submitting the franchise application to obtain information about the Auntie Anne's franchise system on behalf of another person or company. The franchisee must disclose all businesses with which they are affiliated or connected, either directly or indirectly, to Auntie Annes.
This requirement ensures that franchisees are fully committed to the Auntie Annes system and do not have conflicting interests that could harm the brand. It also protects Auntie Annes' confidential information and business strategies from being accessed by competitors. Failure to comply with these representations could lead to legal repercussions, as the franchisee agrees to indemnify and hold Auntie Anne's harmless from any costs, expenses, damages, and attorneys' fees arising from a breach of this agreement.