Under an Auntie Annes Site Agreement, can a franchisee create obligations on behalf of Auntie Annes?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
You understand that the Franchise Agreement contains the entire agreement between us and you concerning the franchise for the Auntie Anne's® franchise, meaning any prior oral or written statements not set out in the Franchise Agreement will not be binding. YOU UNDERSTAND THAT YOUR ACKNOWLEDGEMENT OF THE STATEMENTS ABOVE ARE IMPORTANT TO US AND THAT WE WILL RELY ON THEM. BY SIGNING THIS ACKNOWLEDGEMENT, YOU ARE REPRESENTING THAT YOU HAVE CONSIDERED EACH STATEMENT CAREFULLY AND THAT EACH STATEMENT IS ACCURATE AND TRUTHFUL.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
Based on the 2024 Auntie Annes Franchise Disclosure Document, it is crucial to understand the limitations placed on a franchisee's ability to act on behalf of the franchisor. Item 22 includes an acknowledgement that the franchisee must sign, confirming they understand the scope of the agreement.
The franchisee acknowledges that the Franchise Agreement represents the entire agreement between Auntie Annes and the franchisee. This means any prior oral or written statements not explicitly included in the Franchise Agreement are not binding. This provision protects Auntie Annes from franchisees claiming the franchisor made promises or agreements outside the bounds of the formal contract.
This acknowledgement underscores that Auntie Annes franchisees cannot create obligations or make agreements on behalf of the franchisor unless those obligations or agreements are clearly defined and documented within the Franchise Agreement. Prospective franchisees should carefully review the Franchise Agreement and Disclosure Document, and seek legal counsel, to fully understand the scope of their rights and responsibilities and to ensure that no external promises or representations are being relied upon.