Does the Auntie Annes SRU agreement allow the lessee to make any claims to ownership of the SRU?

According to Auntie Annes's 2024 Franchise Disclosure Document, the Satellite Retail Unit (SRU) agreement explicitly prohibits the lessee from claiming ownership of the SRU. The document states that the SRU is owned or leased by the Lessor (Auntie Annes). This condition is a standard practice in franchising, where the franchisor retains ownership or control over key assets.

However, the Auntie Annes agreement does provide a potential path to ownership. The Lessor, at its sole discretion, may allow the Lessee to purchase the SRU at its then-current value, as determined by the Lessor. This clause provides some flexibility, but the decision to sell remains entirely with Auntie Annes.

If the Lessee purchases the SRU, they will be required to sign Auntie Anne's then-current form of franchise agreement and pay the then-current initial franchise fee. This implies that purchasing the SRU would essentially be treated as establishing a new franchise location, subject to the standard requirements and fees. This ensures that Auntie Annes maintains consistent franchise terms and revenue streams, even if a franchisee acquires the physical SRU. This also means that the franchisee would need to evaluate the costs and benefits of purchasing the SRU versus leasing it, considering the additional franchise agreement and fees.