Is Section 2.2 (Renewal Term) of the Auntie Annes Agreement still valid, or has it been deleted?

According to Auntie Annes's 2024 Franchise Disclosure Document, Section 2.2 (Renewal Term) of the agreement has been deleted in its entirety for Concession Shop franchises. This means that the standard renewal options typically available in a franchise agreement do not apply to franchisees operating a Concession Shop.

For a prospective Auntie Annes franchisee, this deletion has significant implications. Specifically, franchisees operating a Concession Shop will not have a contractual right to renew their franchise agreement at the end of the initial term. The initial term for a Concession Shop is 10 years from the opening date of the franchised business.

This lack of a renewal option introduces risk, as the franchisee's ability to continue operating the Auntie Annes business after the initial term is solely at the discretion of the franchisor. If the franchisee wishes to continue operating after the initial 10-year term, they would need to negotiate a new agreement with Auntie Annes, which may or may not be granted, and could involve different terms and fees than the original agreement. This is a departure from standard franchising practices, where franchisees often have the option to renew their agreements, providing a degree of security and continuity for their investment.