Under what condition will Auntie Annes NOT consent to a transfer of the franchise?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- The undersigned agrees to maintain the Confidential Information in strictest confidence and not to copy, reproduce or otherwise transmit the Confidential Information without the Franchisor's prior written consent, which may be denied in the Franchisor's sole discretion.
-
- The undersigned may not disclose or disseminate the Confidential Information to any third party without the Franchisor's prior written consent, except the undersigned may share the Confidential Information with his/her financial and legal advisors on a need to know basis only and only if such advisors agree to be bound by the terms and conditions of this Agreement.
-
- At the Franchisor's request, upon the undersigned's completion of his/her investigation of an Auntie Anne's franchise, the undersigned agrees to return to the Franchisor all Confidential Information received by the undersigned or to otherwise dispose of it in accordance with the Franchisor's instructions.
For purposes of this Agreement, "Confidential Information" shall mean all financial, business, market and operating information of any kind to relating to the Auntie Anne's franchise program or the operation of an Auntie Anne's franchise, all recipe ingredients, operational methods and processes, shop layouts, equipment specifications, list of suppliers and vendors, financial information pertaining to the Franchisor, shop design criteria, shop location criteria, blueprints, operational and financial standards, and all related matters regarding Auntie Anne's businesses, whether communicated in writing or orally. "Confidential Information" does not include data, material or information: (i) which is known to the undersigned at the time of disclosure as demonstrated by the undersigned's files and records; (ii) becomes known to the undersigned from another source without confidentiality restrictions; or (iii) is or becomes part of the public domain through no act or omission by the undersigned.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
Based on the 2024 Auntie Annes Franchise Disclosure Document, there are circumstances in which Auntie Annes may not consent to a transfer of a franchise. Specifically, Auntie Anne's may deny the undersigned access to confidential information if the franchisor believes that the information will be used for purposes other than investigating the franchise opportunity.
Auntie Annes requires that the potential franchisee agrees to use confidential information only in connection with their investigation of the Auntie Anne's franchise. The potential franchisee must also agree to maintain the confidentiality of the information and not copy, reproduce, or transmit it without prior written consent from Auntie Annes. This consent may be denied at Auntie Anne's sole discretion.
Furthermore, the potential franchisee cannot disclose or disseminate confidential information to any third party without prior written consent from Auntie Annes, except for their financial and legal advisors, who must also agree to be bound by the terms and conditions of the agreement. Upon completion of the investigation, the potential franchisee must return all confidential information to Auntie Annes or dispose of it according to their instructions. Confidential information includes financial, business, market, and operating information related to the Auntie Anne's franchise program, recipes, operational methods, shop layouts, equipment specifications, supplier lists, financial information, shop design criteria, location criteria, blueprints, and operational and financial standards.