Under what conditions might Auntie Annes grant a franchisee the right to lease and operate an SRU?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
The opportunity to participate in our SRU Program which allows for the operation of a secondary selling point apart from the Shop is offered at our sole discretion. You must comply with the terms and conditions of the then-current SRU Addendum and, if you lease the SRU from us, SRU Lease Agreement. The SRU Addendum and SRU Lease Agreement, and your right to operate and lease the SRU, can be terminated by us upon 48 hours' written notice. You may terminate the SRU Addendum and SRU Lease Agreement, and cease operating the SRU, by providing us with two weeks' written notice. However, if you terminate the SRU Addendum and SRU Lease Agreement within the first 12 months, you will be responsible for rental payments through the entire 12-month period. The placement of the SRU will in no way modify the location granted to you by your Franchise Agreement.
Source: Item 10 — FINANCING (FDD page 61)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, the opportunity to participate in the Satellite Retail Unit (SRU) program, which allows for a secondary selling point apart from the main shop, is offered at Auntie Anne's sole discretion. To participate, franchisees must comply with the terms and conditions of the then-current SRU Addendum and, if they lease the SRU from Auntie Anne's, the SRU Lease Agreement.
Auntie Anne's can terminate the SRU Addendum and SRU Lease Agreement, along with the right to operate and lease the SRU, with just 48 hours' written notice. Franchisees can terminate the same agreements by providing two weeks' written notice and ceasing SRU operations. However, if a franchisee terminates the SRU Addendum and SRU Lease Agreement within the first 12 months, they are responsible for rental payments through the entire 12-month period.
The placement of the SRU does not modify the location granted by the Franchise Agreement. This means the SRU provides an additional sales opportunity without altering the franchisee's primary territory or location rights. Auntie Anne's also leases carts and equipment to franchisees participating in the SRU program, as mentioned in Items 5 and 8 of the FDD.