Under what conditions can Auntie Annes terminate the Satellite Retail Unit Addendum for cause?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in the SRU | Summary |
|---|---|---|
| Addendum | ||
| a. Length of the SRU Addendum term | Not applicable | Length of term is dependent on Franchise Agreement term. |
| b. Renewal or extension of the term | Not applicable | |
| c. Requirements for franchisee to | Not applicable | |
| renew or extend | ||
| d. Termination by franchisee | 15 | You must give us 14 days' advance written notice. |
| e. Termination by us without cause | 15 | We may terminate the applicable addendum with 48 hours' prior written notice to you for any reason. |
| f. Termination by us with cause | 14 | We may terminate the applicable addendum for any breach of the addendum or the Franchise Agreement. |
| g. "Cause" defined- curable defaults | 13 and 14 | Any violation of the provisions of the Franchise Agreement constitutes a breach of the addenda. |
| h. "Cause" defined –non-curable | 14 | Any violation of the provisions of the Franchise Agreement |
| defaults | constitutes a breach of the addenda. |
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 franchisor can terminate the Satellite Retail Unit (SRU) Addendum for cause if the franchisee breaches either the addendum itself or the overarching Franchise Agreement. Specifically, any violation of the provisions outlined in the Franchise Agreement is considered a breach that allows Auntie Annes to terminate the SRU Addendum. This applies to both curable and non-curable defaults.
This means that franchisees must adhere strictly to all terms and conditions specified in both the SRU Addendum and the Franchise Agreement to avoid termination. Common examples of violations could include failure to meet operational standards, non-payment of fees, or any other breach of contract.
Prospective franchisees should carefully review the Franchise Agreement and SRU Addendum to fully understand their obligations and the potential consequences of non-compliance. Understanding what constitutes a breach is crucial for maintaining a good standing with Auntie Annes and ensuring the longevity of their franchise.