Under what condition will Auntie Annes approve the opening of a Shop?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
We will approve the opening of your Shop, provided you have met your pre-opening obligations.
We estimate that the typical time between signing the Franchise Agreement and opening your Shop is 3 to 12 months.
Factors affecting this time include attendance at, and satisfactory completion of, the Management Training Program; obtaining the Lease; obtaining all necessary permits; completion of construction; and delivery and installation of equipment and supplies.
For a Shop, you must (i) identify the Accepted Location, (ii) obtain our acceptance of the Accepted Location, (iii) sign any documentation we require to document the Accepted Location, (iv) obtain our acceptance of a Lease for the Accepted Location, (v) sign the accepted Lease for the Accepted Location or otherwise acquire the ownership rights to the Accepted Location, and (vi) submit to us a complete set of final Architectural Plans within 150 days after you sign the Franchise Agreement (the "Site Approval Deadline").
You must begin construction at the Accepted Location within 270 days after we sign the Franchise Agreement (the "Construction Start Deadline").
You must open your Shop within 360 days after we sign the Franchise Agreement (the "Opening Deadline").
We may, in our sole discretion and upon your request, grant you an extension to any of these deadlines for a fee.
We may terminate your Franchise Agreement (without refunding the Initial Franchise Fee) if you fail to meet the Site
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 61–77)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, Auntie Annes will approve the opening of a shop provided that the franchisee has met all pre-opening obligations. These obligations include identifying and obtaining acceptance of the location, securing a lease, and submitting architectural plans within 150 days of signing the Franchise Agreement.
Additionally, construction must begin within 270 days, and the shop must open within 360 days from the date the Franchise Agreement is signed. Meeting these deadlines is crucial, as failure to do so can result in the termination of the Franchise Agreement without a refund of the initial franchise fee. Auntie Annes may also require franchisees to periodically provide photographs of the construction progress and may inspect the shop to ensure it meets all standards and requirements.
Furthermore, franchisees must obtain written approval for their grand opening advertising plan at least 30 days before the scheduled start date and use only approved advertising materials. This ensures that the grand opening aligns with Auntie Annes's brand standards and marketing strategies. The grand opening obligation requires a minimum spend of $2,500 for shops in Other Locations, $7,500 for Streetside Locations, and a range of $1,000 to $5,000 for Concession Shops, depending on what Auntie Annes determines is appropriate. For Co-Branded Shops, the minimum spend is $5,000 for Other Locations and $15,000 for Streetside Locations.
Overall, the approval to open an Auntie Annes shop is contingent upon meeting specific deadlines, adhering to construction and design standards, and executing an approved grand opening plan. These requirements are designed to ensure consistency and quality across all Auntie Annes locations, which is a common practice in franchising to maintain brand integrity.