Under what condition is an Auntie Annes franchisee prohibited from transferring their interest in the Franchise Agreement?
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)
Based on the 2024 Auntie Annes Franchise Disclosure Document, if a prospective franchisee is operating or is a resident of Maryland, they should not sign the acknowledgement. This acknowledgement is designed to confirm that the franchisee has not received any unauthorized or misleading statements, has been properly represented, and understands the limitations on potential claims related to the franchise.
The document specifies that Auntie Annes and the franchisee are preparing to enter into a Franchise Agreement for the operation of an Auntie Anne's franchise. The purpose of the acknowledgement is to ensure transparency and understanding between both parties before finalizing the agreement.
If a prospective franchisee finds any statement within the acknowledgement to be inaccurate or untrue, they are instructed to halt the signing process and immediately contact the Senior Vice President of Franchise Administration at Auntie Annes, providing a detailed explanation of the discrepancy. This process aims to address and resolve any misunderstandings or misrepresentations before the franchise agreement is executed.