Under what conditions can Auntie Annes suspend Support Services to a franchisee?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event of a Franchisee Default (as defined below), Company reserves the right, but not the obligation, to suspend part or all of the Support Services until such Franchisee Default is cured; provided however, that Franchisee shall continue to pay Service Fees, during the Term of the Agreement notwithstanding any suspension of Support Services due to a Franchisee Default.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, Auntie Anne's reserves the right to suspend Support Services to a franchisee under specific circumstances. If a franchisee is in default of their agreement, Auntie Anne's has the option to suspend part or all of the Support Services.
However, even if Auntie Anne's suspends Support Services due to a franchisee's default, the franchisee is still obligated to continue paying Service Fees for the duration of the agreement. This means that franchisees could potentially pay for services they are not receiving if they are in default.
This clause highlights the importance of adhering to the franchise agreement and avoiding default. Franchisees should ensure they understand the terms of the agreement and the potential consequences of non-compliance, including the suspension of support services while still being required to pay fees.