What responsibility does Auntie Annes disclaim regarding the suitability of the Accepted Location?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
While we may assist you in selecting a proposed site, we are not obligated to do so. We or our affiliates typically do not lease or sublease locations for Shops, but we may do so from time to time. (Franchise Agreement, Section 5.2)
We expect you to retain an independent expert to evaluate the suitability of a proposed site and to conduct your independent investigation of the site. We disclaim any responsibility for the suitability of the Accepted Location. Our acceptance of the site is based on the site satisfying our minimum site selection criteria only and will not be construed as a representation or warranty that the Shop located at the Accepted Location will be successful. (Franchise Agreement, Section 5.3)
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, while they may assist in selecting a site, franchisees are expected to retain an independent expert to evaluate the suitability of a proposed site. Auntie Annes explicitly disclaims any responsibility for the suitability of the Accepted Location.
This means that even though Auntie Annes reviews and accepts a location based on their minimum site selection criteria, this acceptance should not be taken as a guarantee or warranty of the Shop's future success at that location. The franchisee bears the ultimate responsibility for ensuring the location is viable for their business.
Prospective Auntie Annes franchisees should understand that Auntie Anne's site approval is based on meeting minimum criteria, not on predicting profitability. It is crucial for franchisees to conduct their own thorough due diligence, including market research and expert consultation, to assess the location's potential for success. This disclaimer is a common practice in franchising, shifting the burden of location suitability to the franchisee, who is ultimately responsible for the business's performance.