What right does Auntie Annes require in the lease regarding modifications or amendments?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- D. Site Agreement Modifications. You must submit a copy of any proposed modification, amendment, or renewal of the Site Agreement (a "Site Agreement Change") (along with a true and complete copy of the then-existing Site Agreement) to us for our review and approval prior to executing such documents, not less than 10 days prior to the proposed effective date of such modification, amendment, or renewal. Our review of the proposed Site Agreement Change will be limited to ensuring that it is compliant with the terms of this Agreement. Our acceptance of the Site Agreement Change shall not be unreasonably withheld and may be conditioned upon the inclusion of terms in the Site Agreement acceptable to us, including those provisions as specified in Section 5.4.C. (Preferred Lease Terms). If you renew a Lease or a Lease is extended by the landlord for a period of 12 months or more, we may require you to pay us our then-current lease renewal fee. We will notify you in writing whether we approve of the proposed Site Agreement Change. If approved and subsequently signed, you must provide us with a copy of the signed Site Agreement Change within 15 days after its execution. We may charge you a Lease Documentation Late Fee if you fail to timely provide the modified or renewed Site Agreement.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees must submit any proposed modification, amendment, or renewal of their Site Agreement to Auntie Annes for review and approval. This submission, including a copy of the existing Site Agreement, must be made at least 10 days before the proposed effective date. Auntie Annes's review is focused on ensuring compliance with the terms of the Franchise Agreement.
Approval of Site Agreement changes by Auntie Annes will not be unreasonably withheld but may be conditional. Auntie Annes may require specific terms to be included in the Site Agreement, particularly those outlined in Section 5.4.C (Preferred Lease Terms). If a lease is renewed or extended for 12 months or more, Auntie Annes may require the franchisee to pay a lease renewal fee.
Auntie Annes will provide written notification of their decision regarding the proposed Site Agreement change. If approved and signed, the franchisee must provide Auntie Annes with a copy of the signed Site Agreement change within 15 days of execution. Failure to provide the modified or renewed Site Agreement on time may result in a Lease Documentation Late Fee. This process ensures that Auntie Annes maintains some control over the lease terms and that they align with the franchise agreement.