What is the Auntie Annes 'SRU Addendum' also referred to as?
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' is also referred to as the 'Auntie Anne's Satellite Retail Unit Addendum'. This addendum is an agreement that amends the original Franchise Agreement, allowing a franchisee to operate a satellite retail unit (SRU).
This addendum outlines the terms and conditions under which the franchisee can operate an SRU, including stipulations that revenues generated from the SRU are included in 'Net Sales'. It also specifies that if Auntie Annes approves the franchisee to operate an SRU, the franchisee may engage in certain activities from a location that Auntie Annes specifies, which is referred to as the 'SRU Location'.
For a prospective Auntie Annes franchisee, understanding the SRU Addendum is crucial if they are considering operating a satellite retail unit in addition to their primary franchise location. It defines the scope of operations, financial obligations, and the relationship between the franchisee, the franchisor, and the SRU location. The franchisee should carefully review this addendum to fully understand their rights and responsibilities regarding the operation of an SRU.