Where are the specific amounts for non-compliance fees for Auntie Annes franchises specified?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the Disclosure Document for Auntie Anne's Franchisor SPV LLC for use in the State of Maryland is amended as follows:
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION:
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- No release language required on renewal, transfer, or signing the Franchise Agreement will relieve us or any other person, directly or indirectly, from liability imposed by the Maryland Franchise Registration and Disclosure Law.
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- No provision of the Disclosure Document or Franchise Agreement will be construed as a release, estoppel, or waiver by you of any liability we incur under the Maryland Franchise Registration and Disclosure Law.
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- Item 17.v.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
Based on the 2024 Auntie Annes Franchise Disclosure Document excerpts, there is no specific mention of non-compliance fees. However, Item 6 includes an amendment for Minnesota franchisees stating that the highest Insufficient Funds Fee permitted under Minnesota Statute 604.113 is $30.
While the documents do not list specific non-compliance fees, they do mention circumstances that could lead to termination without opportunity to cure, such as failure to comply with the terms of a Site Agreement for Concession Shops or deterioration of a Host Facility's brand. Additionally, franchisees may be required to indemnify and hold Auntie Anne's harmless from any costs, expenses, damages, and attorneys' fees arising from a breach of the Franchise Agreement.
Prospective franchisees should carefully review the Franchise Agreement and related documents, paying close attention to the sections outlining the franchisee's obligations and the potential consequences of non-compliance. It would be prudent to ask Auntie Annes for a comprehensive list of all potential fees and penalties that could be incurred during the franchise term, including those related to non-compliance, to fully understand the financial implications of operating an Auntie Anne's franchise.