Does Auntie Annes reserve the right to change the elements of the System from time to time?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to operate, develop, and change the System in any manner that is not specifically prohibited by this Agreement.
If it becomes advisable at any time, in our sole discretion, for us to change, upgrade, or discontinue use of any of the components of the Computer System, you will comply with our directions, at your expense, within a reasonable time after notice to you.
We will communicate changes in the Standards or the Manuals in writing or electronically to you, as we deem appropriate.
You must immediately adopt and use any Supplements to the Manuals.
You agree that complete uniformity under many varying geographic and other conditions, and over extended spans of time, is not practical and may be detrimental to the System, and that as a result: (i) we may vary the Standards for any franchisee as we deem necessary; (ii) we may grant franchises using the System under terms that may differ materially from the terms of this Agreement; and (iii) our obligations and rights with respect to our various franchisees may differ materially from our obligations and rights with respect to you, without in any way affecting our rights with respect to you.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, Auntie Annes retains the right to modify the System. Specifically, Auntie Annes has the authority to operate, develop, and change the System in any manner not explicitly prohibited by the franchise agreement. This gives Auntie Annes broad discretion in evolving its business model and operational standards.
This right extends to various aspects of the franchise, including the Computer System. Auntie Annes can require franchisees to purchase, lease, or license updated computer systems, software, and equipment. If Auntie Annes decides to change, upgrade, or discontinue any component of the Computer System, franchisees must comply at their own expense within a reasonable time after receiving notice. Auntie Annes bears no liability for these required modifications or any unauthorized changes made by the franchisee.
Auntie Annes also reserves the right to modify its standards and manuals, communicating these changes in writing or electronically. Franchisees are obligated to adopt and use any supplements to the manuals immediately, with all supplements being binding as if they were part of the original manuals. Franchisees are responsible for monitoring and maintaining an up-to-date copy of the manuals at their franchised business. These changes to standards or manuals may require franchisees to invest additional capital or incur higher operating costs.
Auntie Annes may also vary the standards for any franchisee as it deems necessary and may grant franchises under differing terms. This means that Auntie Annes' obligations and rights with respect to different franchisees can vary without affecting its rights with respect to any individual franchisee. Overall, these stipulations grant Auntie Annes significant flexibility to adapt and evolve the franchise system, potentially requiring franchisees to adapt at their own expense.