Under what conditions does the Auntie Annes SRU Lease Agreement terminate?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ring | Not applicable | | | the term of the franchise | | | | r. Non-competition covenants after the | Not applicable | | | franchise is terminated or expires | | | | s. Modification of the agreement | Not applicable | | | t. Integration/merger clause | Not applicable | | | u. Dispute resolution by | Not applicable | | | arbitration or mediation | | | | v. Choice of forum | Not applicable | | | w. Choice of law | Not applicable | |
Satellite Retail Unit Lease Agreement
| Provision | Section in the SRU Lease Agreement | Summary |
|---|---|---|
| a. Length of the SRU Lease Agreement term | 3 | Terminates when lease with landlord terminates or Franchise Agreement terminates |
| b. Renewal or extension of the term | Not applicable | |
| c. Requirements for franchisee to renew or extend | Not applicable | |
| d. Termination by franchisee | 14 | You must give two weeks advance written notice. In the event you terminate the SRU Lease Agreement prior to the passage of 12 months, you will be responsible for rental payments for the entire 12 month period. |
| e. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 86–91)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the SRU (Satellite Retail Unit) Lease Agreement can terminate under several conditions. The agreement terminates automatically when the lease with the landlord ends or when the Franchise Agreement itself is terminated.
A franchisee can terminate the SRU Lease Agreement by providing two weeks' advance written notice to Auntie Annes. However, if the franchisee terminates the agreement before 12 months have passed, they are responsible for rental payments for the entire 12-month period. This clause protects Auntie Annes from losses if a franchisee quickly exits the location.
Auntie Annes has the right to terminate the SRU Lease Agreement with 48 hours' written notice without cause. Auntie Annes can also terminate the agreement with cause if the franchisee violates any provision of the Franchise Agreement, as any such violation constitutes a breach of the SRU Lease Agreement. Upon termination, the franchisee is obligated to return the SRU to Auntie Annes at their own expense.