According to the Auntie Annes FDD, what locations are classified as 'Other Locations'?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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- "Streetside Locations" include freestanding, inline, and endcap locations on city streets or in shopping centers (including power centers, lifestyle centers, and strip centers, but excluding malls (enclosed and open air) and outlet malls and centers). "Other Locations" include all locations other than Streetside Locations, including airports, amusement parks, big box stores, casinos, colleges, convenience stores, farmer's markets, military bases, malls (enclosed and open air), cobranded Subways®, outlet malls and centers, sports and entertainment venues, train stations, transportation centers, travel plazas, truck stops, universities, Walmarts®, zoos, and delivery or ghost kitchens.
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, 'Other Locations' encompass a wide variety of venues beyond traditional streetside shops. This classification is important because royalty and advertising fees can vary based on location type.
Specifically, 'Other Locations' include airports, amusement parks, big box stores, casinos, colleges, convenience stores, farmer's markets, and military bases. This category also covers locations within malls (both enclosed and open air), cobranded Subways, outlet malls and centers, sports and entertainment venues, train stations, transportation centers, travel plazas, truck stops, and universities. Finally, Auntie Annes considers locations within Walmarts, zoos, and delivery or ghost kitchens as 'Other Locations'.
For a prospective franchisee, understanding this classification is crucial because the royalty fee and advertising contribution may differ based on whether the shop is in a 'Streetside Location' versus an 'Other Location.' For example, the advertising contribution for shops in 'Other Locations' is currently 1.5% of Net Sales, while shops in 'Streetside Locations' pay 3% of Net Sales. Franchisees should carefully consider the implications of their chosen location on these ongoing fees.