Under what circumstances should the Franchisee Disclosure Acknowledgement NOT be completed for an Auntie Annes franchise?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND, DO NOT SIGN THE ACKNOWLEDGEMENT.
As you know, Auntie Anne's Franchisor SPV LLC ("we") and the franchisee identified below ("you") are preparing to enter into an Auntie Anne's® Franchise Agreement (the "Franchise Agreement") for the operation of an Auntie Anne's® franchise. The purpose of this Acknowledgement is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, to be certain that you have been properly represented in this transaction, and to be certain that you understand the limitations on claims you may make by reason of the purchase and operation of your franchise. You cannot sign or date this Acknowledgement the same day as the Receipt for the Franchise Disclosure Document, but you must sign and date it the same day you sign the Franchise Agreement and pay your franchise fee.
Please review each of the following statements carefully and initial by each providing your acknowledgement that the statement is accurate and true. If you find that a statement is not accurate and true, please cease signing this Acknowledgement and related documents and immediately e-mail Tim Goodman, Senior Vice President of Franchise Administration, at tgoodman@gotofoods.com and provide an explanation of why you believe such statement is not accurate and true.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes FDD, the Franchisee Disclosure Acknowledgement should not be signed if the franchise is to be operated in, or the franchisee is a resident of, Maryland. This is a specific legal requirement that Auntie Annes franchisees must adhere to.
The Acknowledgement is used by Auntie Annes to confirm that no unauthorized or untrue statements were made to the franchisee, to ensure proper representation, and to confirm the franchisee understands the limitations on potential claims related to the franchise. The document also confirms that the franchisee understands the franchise agreement is the entire agreement and any prior statements not in the agreement are not binding.
It is important to note that the Acknowledgement cannot be signed on the same day the Franchise Disclosure Document is received. However, it must be signed on the same day the Franchise Agreement is signed and the franchise fee is paid. If a prospective Auntie Annes franchisee finds any statement in the Acknowledgement to be inaccurate, they are instructed to cease signing the document and contact Auntie Anne's Senior Vice President of Franchise Administration immediately with an explanation.