Under what circumstances might Auntie Annes allow a franchisee to relocate their shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
You may request to relocate your Shop if you lose the right to operate at the Accepted Location or provide other business justifications for the relocation. You may not relocate your Shop unless we approve the relocation in advance in writing. We have not established a set of conditions or criteria under which we evaluate or approve relocation requests, except that you must comply with our site approval process, must be in compliance with all terms of the Franchise Agreement, and must have the funds available to relocate the Shop and to construct a new Shop according to our then-current design standards. We are under no obligation to approve a proposed relocation of the Shop. If you lose the right to occupy the premises where you are operating your Shop, we may, in our sole discretion, terminate your Franchise Agreement.
If we approve your request to relocate, in our sole discretion, then (i) the Site Agreement for the new location must comply with the Franchise Agreement, (ii) you must de-identify the former site, (iii) we may charge you a Relocation Fee (see Item 6), (iv) we may require you to pay an agreed minimum royalty to us during the period in which the Shop is not in operation, and (v) we may require you to sign our then-current Franchise Agreement (which may have materially different terms than your existing Franchise Agreement) or an amendment to your existing Franchise Agreement. If the term of the Lease for the new location extends beyond the term of your Franchise Agreement, we may, in our sole discretion, extend the term of your existing or new Franchise Agreement to match the term of the Lease for the new location, provided you will be required to pay the Relocation Extension Fee (see Item 6).
Source: Item 12 — TERRITORY (FDD pages 77–80)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, a franchisee may request to relocate their shop if they lose the right to operate at the current accepted location or if they provide other business justifications for the relocation. However, Auntie Anne's must approve the relocation in advance and in writing.
Auntie Anne's has not established a specific set of conditions or criteria for evaluating or approving relocation requests. However, the franchisee must comply with Auntie Anne's site approval process, adhere to all terms of the Franchise Agreement, and have sufficient funds available to relocate the shop and construct a new shop according to the current design standards. Auntie Anne's is under no obligation to approve a proposed relocation.
If Auntie Anne's approves the relocation, the site agreement for the new location must comply with the Franchise Agreement, and the franchisee must de-identify the former site. Auntie Anne's may charge a relocation fee, require the franchisee to pay an agreed minimum royalty during the period the shop is not in operation, and require the franchisee to sign the then-current Franchise Agreement or an amendment to the existing Franchise Agreement. If the lease term for the new location extends beyond the term of the existing Franchise Agreement, Auntie Anne's may extend the term of the existing or new Franchise Agreement to match the lease term, provided the franchisee pays a relocation extension fee.
It is important to note that if a franchisee loses the right to occupy the premises where they operate their Auntie Anne's shop, Auntie Anne's has the sole discretion to terminate the Franchise Agreement.