Can Auntie Annes suspend an Auntie Annes franchisee's participation in programs or benefits funded by Advertising Contributions if the franchisee is in default?

According to Auntie Annes's 2024 Franchise Disclosure Document, if a franchisee is in default, Auntie Annes has the right to suspend the franchisee's or the franchised business's participation in any programs or benefits offered. This includes programs or benefits that are funded by Advertising Contributions.

This means that if an Auntie Annes franchisee fails to meet their obligations under the Franchise Agreement, such as making required payments or adhering to operational standards, Auntie Annes can take action to suspend their access to certain benefits. These benefits could include marketing programs, training opportunities, or other support services that are normally available to franchisees in good standing. The suspension of these benefits could negatively impact the franchisee's ability to effectively operate and promote their business.

It is important to note that Auntie Annes's decision to suspend participation in programs or benefits is one of several potential remedies available to them in the event of a franchisee default. The FDD specifies that exercising this right does not prevent Auntie Annes from pursuing other remedies or enforcing other provisions of the Franchise Agreement. Franchisees are still obligated to continue paying fees and complying with all other requirements, even if their participation in certain programs is suspended.