Under what circumstances can an Auntie Annes franchisee assign the agreement without the company's consent?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as expressly provided herein, this Agreement may not be assigned by Franchisee without Company's prior written consent including assignment by operation of law and change of control.
Any attempted assignment of this Agreement in violation of the preceding sentence will be null and void ab initio.
In the event Franchisee sells or transfers the Franchised Business, this Agreement shall terminate and the transferee shall be required to execute Company's then-current form of Service Level Agreement.
In the event of an assignment of the Franchise Agreement which has been approved by Franchisor, this Agreement shall be deemed to be assigned to the assignee of the Franchise Agreement and such assignee shall be deemed to have assumed all rights and obligations of Franchisee under this Agreement.
Company may assign this Agreement to any person or entity without Franchisee consent.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a franchisee generally cannot assign the Franchise Agreement without the company's prior written consent. This includes assignments that occur by operation of law or through a change of control. Any attempt to assign the agreement without this consent is considered null and void from the beginning.
However, there is an exception: if the franchisee sells or transfers the franchised business, the existing Franchise Agreement terminates. The person or entity to whom the business is transferred is required to execute Auntie Annes's then-current form of Service Level Agreement.
If Auntie Annes approves an assignment of the Franchise Agreement, the agreement is then considered assigned to the new party. This assignee is then understood to have taken on all the rights and responsibilities of the franchisee under the original agreement. Auntie Annes, on the other hand, retains the right to assign the agreement to any person or entity without needing the franchisee's consent.