In the Auntie Annes SRU Addendum, what does 'you' refer to?
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"). |
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, in the context of the Satellite Retail Unit (SRU) Addendum, "you" refers to the franchisee. Specifically, the SRU Addendum is an agreement between Auntie Anne's Franchisor SPV LLC, identified as "we" or "us," and the individual or entity listed as «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», who are collectively referred to as "you".
This addendum modifies the original Franchise Agreement to allow the franchisee to operate a Satellite Retail Unit (SRU). The document outlines that Auntie Annes grants the franchisee a non-exclusive license to operate one business using their trademarks and system. Unless authorized to operate an SRU, the franchised business operates at the location specified in Schedule A. If SRU operation is approved, the franchisee can conduct certain activities from a location specified by Auntie Annes.
The SRU Addendum also clarifies that "Net Sales" includes all revenues generated from the SRU, amending Section 3.2.C of the original Franchise Agreement. This ensures that all sales from the SRU are accounted for when calculating royalties and other financial obligations under the franchise agreement. The franchisee, as "you" in this agreement, is bound by these terms when operating an SRU.
Furthermore, the franchisee, as Lessee, is responsible for defending and indemnifying Auntie Annes (Lessor) from any losses, claims, or expenses related to the SRU's operation. The franchisee also acknowledges that the SRU is owned or leased by Auntie Annes, unless Auntie Annes decides to allow the franchisee to purchase it, which would require signing the current franchise agreement and paying the initial franchise fee.