What sections of the Auntie Annes franchise agreement must a franchisee comply with for each Remodel?

According to Auntie Annes' 2024 Franchise Disclosure Document, franchisees must comply with specific sections of the franchise agreement when undertaking a remodel of their franchised business. Specifically, for each remodel, franchisees must adhere to Sections 6.1, 6.2, and 6.3 of the agreement. These sections cover leasehold improvements, architectural plans, and construction, inspection, and government approvals, respectively. This ensures that all remodels meet Auntie Annes' standards and comply with applicable laws.

Before starting a remodel, Auntie Annes, its affiliate, or its designee will inspect the franchised business either in person or virtually. Following the inspection, a site survey and/or design plan will be produced to ensure compliance with the then-current standards. The franchisee may be required to pay a reasonable fee for the creation of this site survey and/or design plan. All plans, designs, furniture, fixtures, equipment, and décor related to the remodel must receive written approval from Auntie Annes. These items must conform to the brand's current standards and all applicable laws. Additionally, Auntie Annes may require that these items be purchased from approved suppliers designated or approved in writing by the company.

This requirement ensures uniformity and quality across all Auntie Annes locations, maintaining brand consistency. Franchisees should be aware that remodels can require significant capital investment, and they are responsible for covering these costs, even if the expenditures cannot be fully amortized over the remaining term of the franchise agreement. This obligation is not exclusive, meaning other requirements may also apply. Franchisees should carefully review these sections of the franchise agreement and budget accordingly to meet these requirements.