Does Auntie Annes have the right to review the Site Agreement?

According to Auntie Annes's 2024 Franchise Disclosure Document, franchisees must provide Auntie Anne's with a copy of the signed lease, sublease, or rental agreement (referred to as the "Lease") or the purchase agreement (referred to as the "Purchase Agreement," and together with the Lease, the "Site Agreement") for their chosen location, ensuring all material terms are specified. While the franchisee is solely responsible for negotiating the terms and fulfilling the obligations of the Site Agreement, Auntie Anne's retains the right, but not the obligation, to review the Site Agreement before it is executed. This review serves to verify that the agreement complies with Auntie Anne's requirements.

This provision allows Auntie Anne's to ensure that the proposed location meets its standards and protects its brand. However, the franchisee bears the primary responsibility for securing a suitable location and negotiating favorable lease terms. The franchisee should carefully consider all aspects of the Site Agreement, as Auntie Anne's review does not transfer the responsibility for the agreement's terms or its performance to the franchisor.

In practice, this means that while Auntie Anne's can offer guidance and has the option to review the Site Agreement, the onus is on the franchisee to conduct thorough due diligence and negotiate the lease or purchase agreement. The franchisee should seek legal and real estate expertise to ensure the Site Agreement aligns with their business goals and complies with all applicable laws and regulations. This step is crucial for the franchisee's long-term success and stability.