Under what circumstances can the Auntie Annes franchisee assign the Service Level Agreement?
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' 2024 Franchise Disclosure Document, the Service Level Agreement (SLA) outlines the support terms for the POS system used in the franchised business. The franchisee cannot assign the Service Level Agreement without the company's prior written consent, which includes assignments by operation of law or change of control. Any attempt to assign the agreement without this consent is considered void from the beginning.
However, there are two specific scenarios where the SLA can be assigned. First, if the Auntie Annes franchisee sells or transfers their franchised business, the existing SLA terminates, and the new owner must execute the company's current SLA form. Second, if the Auntie Annes franchisor approves an assignment of the Franchise Agreement itself, the SLA is automatically assigned to the new franchisee, who then assumes all rights and responsibilities under the SLA.
Auntie Annes, as the company, retains the right to assign the Service Level Agreement to any person or entity without needing the franchisee's consent. This clause ensures that Auntie Annes has the flexibility to manage its service agreements as it sees fit, which is a standard practice in franchising to maintain operational control and consistency across the brand.