What is the term length for an Auntie Annes Concession Shop Agreement?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
B. Section 2.1 (Initial Term) of the Agreement is deleted in its entirety and replaced with the following:
Term. The term of this Agreement (the "Term") will begin on the Effective Date and will end 10 years from the date that your Franchised Business opens for business (the "Opening Date"), unless this Agreement is terminated sooner as provided in other sections of this Agreement.
- C. Section 2.2 (Renewal Term) of the Agreement is deleted in its entirety.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the term length for a Concession Shop Agreement is 10 years. The agreement's term begins on the effective date and concludes 10 years from the date the franchised business opens, unless the agreement is terminated earlier according to its terms.
This 10-year term is a significant commitment for a prospective franchisee. Unlike a standard Auntie Anne's franchise agreement, the Concession Shop Agreement does not include a renewal term. This means that at the end of the 10-year period, the franchisee does not have an automatic right to extend the agreement.
For potential franchisees, this limited term length has several implications. It is crucial to consider the initial investment and potential return within this 10-year window. Franchisees should also be aware that they will need to renegotiate a new agreement with Auntie Anne's to continue operating the Concession Shop beyond the initial term, and there is no guarantee that a new agreement will be offered or on the same terms.