What is the 'SRU Addendum Date' referring to in the Auntie Annes Satellite Retail Unit Addendum?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Auntie Anne's SRU No |
|---|
| AUNTIE ANNE'S SATELLITE RETAIL UNIT ADDENDUM |
| This Addendum (the "SRU Addendum") is signed as of, 20 |
| (the "SRU Addendum Date") between Auntie Anne's Franchisor SPV LLC, a Delaware limited |
| liability |
| company |
| ("we" |
| or |
| "us") |
| and |
| «Z1_First_Name» |
| «Z1_Last_Name», |
| a |
| «Z1_State_of_Formation» |
| «Z1_Entity_Type», |
| «Z2_First_Name» |
| «Z2_Last_Name», |
| a |
| «Z2_State_of_Formation» |
| «Z2_Entity_Type»«Z3_First_Name» |
| «Z3_Last_Name», |
| a |
| «Z3_State_of_Formation» |
| «Z3_Entity_Type»«Z4_First_Name» |
| «Z4_Last_Name», |
| a |
| «Z4_State_of_Formation» «Z4_Entity_Type»«Z5_First_Name» |
| «Z5_Last_Name» ("you"). |
| BACKGROUND: |
| A. We and you entered into a franchise agreement dated (the |
| "Franchise Agreement"), whereby we granted and you accepted a license to operate a Auntie |
| Anne's® |
| shop No. «Store_Number» located at «location_name», «store_street_address», |
| «store_city», «store_state» «store_zip». |
| B. We and you desire to amend the Franchise Agreement on the terms outlined below to |
| allow you to operate a satellite retail unit (a "SRU"). |
| NOW THEREFORE, in consideration of the premises and for other good and valuable |
| consideration, the parties agree as follows: |
| 1. Section 1.1 (Grant of Franchise) of the Franchise Agreement is deleted and replaced with |
| the following: |
| 1.1 Grant of Franchise. Subject to the terms of this Agreement, we grant to you, and you |
| accept, a non-exclusive license to operate one Business using the Marks and the System |
| (collectively, your "Franchised Business"). Unless we authorize you to operate a satellite |
| retail unit (a "SRU"), the Franchised Business will be operated only at the location specified |
| in Schedule A (the "Accepted Location") or, if we have |
| not yet accepted a site for the |
| Franchised Business as of the date of this Agreement, at a location that |
| we have |
| accepted in accordance with this Agreement within the geographic area specified in |
| Schedule A (the "Site Selection Area"). If we approve you to operate an SRU, you may |
| engage in certain, but not all, of the activities contemplated by this Agreement from a |
| location that we specify (the "SRU Location"). The SRU will also be considered part of |
| the definition of Franchised Business. |
| 2. Section 3.2.C. (Net Sales) of the Franchise Agreement is amended by adding the following: |
| For the avoidance of doubt, "Net Sales" includes all revenues generated from an SRU. |
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the 'SRU Addendum Date' refers to the date the Satellite Retail Unit Addendum is signed. This addendum is an agreement between Auntie Anne's Franchisor SPV LLC and the franchisee, allowing the franchisee to operate a satellite retail unit (SRU). The document states, "This Addendum (the "SRU Addendum") is signed as of, 20 (the "SRU Addendum Date") between Auntie Anne's Franchisor SPV LLC...and [franchisee name]."
The SRU addendum modifies the original franchise agreement to include the operation of the SRU. It outlines terms and conditions specific to the SRU, such as the location, products sold, and how net sales from the SRU are handled. The addendum also amends sections of the original franchise agreement, including those related to the grant of franchise and net sales calculations, to incorporate the SRU.
For a prospective Auntie Annes franchisee, the SRU Addendum Date is a critical reference point. It establishes the start date for specific obligations related to the SRU. For example, the FDD states that the franchisee must have the SRU open and operating within 90 days after the execution of the Satellite Retail Unit Addendum. Therefore, understanding this date is essential for meeting operational deadlines and complying with the terms of the franchise agreement.