What right does Auntie Annes require in the lease regarding product sampling?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
You must use commercially reasonable efforts to ensure that all Leases include, unless we agree otherwise in writing:
- (v) a provision that allows you to offer or distribute product samples outside or over the counter of the Franchised Business, as applicable;
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes requires that franchisees make commercially reasonable efforts to ensure that all leases include a provision allowing the franchisee to offer or distribute product samples outside or over the counter of the franchised business, if applicable. This is one of the preferred lease terms that Auntie Annes seeks to establish.
This requirement ensures that Auntie Annes franchisees have the right to promote their products through sampling, which can be a crucial marketing strategy for attracting customers. By securing this right in the lease agreement, franchisees can freely offer samples without facing potential restrictions from the landlord. This can be especially important in high-traffic locations where attracting customers quickly is essential for success.
However, the FDD states that this inclusion is subject to Auntie Annes's written agreement otherwise. This means that while Auntie Annes prefers this provision, there might be circumstances where it is waived or modified. Prospective franchisees should discuss with Auntie Annes the specific conditions under which this provision might not be required and understand the implications for their marketing strategies if sampling is restricted.