Under what circumstances can Auntie Annes change the credit or payment terms for a franchisee?

According to Auntie Annes' 2024 Franchise Disclosure Document, Auntie Annes has the authority to modify a franchisee's credit or payment terms under specific conditions. These conditions are based on Auntie Annes' assessment of the franchisee's financial stability, payment history, and overall relationship with the company.

Specifically, Auntie Annes may alter the credit or payment terms if it believes the franchisee's financial condition warrants a change. This could be due to factors such as declining sales, increased debt, or other financial difficulties that could impact the franchisee's ability to meet their financial obligations.

Additionally, Auntie Annes may change the terms based on the franchisee's previous payment record. If a franchisee has a history of late or missed payments, Auntie Annes may implement stricter payment terms to mitigate the risk of future non-payment. The nature of the franchisee's relationship with Auntie Annes can also be a factor. This could include issues such as disputes, breaches of contract, or other circumstances that could affect the financial relationship between the franchisee and Auntie Annes.