factual

What responsibilities do the Managers of an Auntie Annes Shop have?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

You are required to devote your best efforts to the proper and effective operation of the Shop. You (if you are an individual) and your Owners (if you are an Entity) are not required to participate in the actual operation of the Shop but may, with our consent, serve as the Primary Contact and/or a Manager. However, we do not recommend an investment in a Shop for investors interested in an absentee management business.

You must appoint a Primary Contact who will be responsible for, and have decision-making autho

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 84)

What This Means (2024 FDD)

According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees are required to devote their best efforts to the proper and effective operation of the shop. While franchisees (if an individual) and owners (if an entity) are not required to participate in the actual operation of the Auntie Annes shop, they may, with Auntie Annes's consent, serve as the Primary Contact and/or a Manager. However, Auntie Annes does not recommend an investment in a shop for investors interested in an absentee management business.

The franchisee must appoint a Primary Contact who will be responsible for, and have decision-making authority regarding, the day-to-day operations of the shop. The Primary Contact must successfully complete the training program to Auntie Annes's satisfaction. If the Primary Contact ceases to be involved in the day-to-day operation of the shop, the franchisee must promptly notify Auntie Annes and appoint a qualified replacement, subject to their approval.

In practice, this means that while an Auntie Annes franchisee isn't obligated to be directly involved in the daily operations, they must ensure the shop is well-managed. If they choose not to manage the shop themselves, they need to appoint a Primary Contact who is both capable and has completed the required training. This individual will then be responsible for the shop's day-to-day decisions and operations. The franchisor prefers that franchisees are actively involved and discourages absentee ownership.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.