Under what conditions will Auntie Annes approve a franchisee's request to relocate their franchised business?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Relocation Request. You may relocate the Accepted Location of the Franchised Business at your expense, if, prior to closing the Franchised Business, you submit a site acceptance request (in the form we provide to you) for your new Proposed Location and obtain our acceptance of the relocation to the Proposed Location. A relocation includes any change of the location of the Franchised Business within a mall, facility, or building to a new location within the same mall, facility, or building. We are under no obligation to approve a relocation of the Franchised Business. Approval under this Section 5.5 will be within our sole discretion, and such approval shall not be granted unless you are in compliance with all terms and conditions of this Agreement and you have the funds available to relocate the Franchised Business and construct a new Franchised Business according to our then-current design standards.
- B. Relocation Conditions. If we approve, in our sole discretion, the relocation of the Franchised Business under this Section 5.5, you agree to comply with the following conditions:
- (i) the new location will be considered the "Accepted Location" as used in this Agreement;
- (ii) all Site Agreements you enter into to secure the new location must comply with Section 5.4 (Site Acquisition);
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a franchisee may request to relocate their franchised business at their own expense. However, Auntie Annes is under no obligation to approve the relocation. To initiate the process, the franchisee must submit a site acceptance request for the new proposed location before closing the existing franchised business. This request must be in the form provided by Auntie Annes. A relocation includes any change of location within the same mall, facility, or building.
Auntie Annes retains sole discretion over whether to approve a relocation request. Approval will not be granted unless the franchisee is in full compliance with all terms and conditions of the Franchise Agreement. Additionally, the franchisee must demonstrate that they have sufficient funds available to cover the relocation expenses and to construct a new Auntie Annes franchise according to the company's current design standards.
If Auntie Annes approves the relocation, the new location will be designated as the "Accepted Location" under the terms of the Franchise Agreement. Furthermore, any site agreements the franchisee enters into to secure the new location must comply with the section regarding site acquisition in the Franchise Agreement. This ensures that the new location meets Auntie Annes's standards and requirements.