Can Auntie Annes change the Payment Due Date for fees in the Manuals or in a written notice?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
credit to the Auntie Anne's side of the Co Branded Shop, and Jamba will collect a separate Royalty Fee (which is 6% to 7% of Net Sales) based on the portion of Net Sales attributable to products that we and Jamba have agreed to credit to the Jamba side of the Co-Branded Shop. |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| may increase in our | |||
| sole discretion to | |||
| 8% of Net Sales; | |||
| currently, 6% of | |||
| Net Sales | |||
| attributed to | |||
| Jamba, which | |||
| Jamba may | |||
| increase in its sole | |||
| discretion to 7% of | |||
| Net Sales | |||
| Jamba Co-Branded | |||
| Shops in Streetside | |||
| Locations: | |||
| Currently, 6% of | |||
| Net Sales, which | |||
| we may increase in | |||
| our sole discretion | |||
| to 7% of Net Sales | |||
| Advertising Contribution | Shops in Other Locations (except Co-Branded Shops in Other Locations): Currently, 1.5% of Net Sales Co-Branded Shops in Other Locations: Currently, 1.5% of Net Sales attributed to Auntie Anne's, 2.5% of Net Sales attributed to Cinnabon, and 3% of Net Sales attributed to Jamba Shops in Streetside Locations: Currently, 3% of Net Sales | Payment Due Date | See Note 3 for the definition of "Other Locations" and "Streetside Locations." You must contribute the Advertising Contribution to the Ad Fund (as defined in Item 11). We may increase the Advertising Contribution at any time by notice to franchisees. However, your required Advertising Contribution and Local Marketing Obligation (as defined below) may not collectively exceed 5% of your Net Sales. For Co-Branded Shops, we will collect the Advertising Contribution based on the portion of Net Sales attributable to products that we and the Co-Branded Franchisor have agreed to credit to the Auntie Anne's side of the Co Branded Shop, and the Co-Branded Franchisor will collect a separate advertising contribution (as specified in its Disclosure Document) based on the portion of Net Sales attributable to products that we and the Co Branded Franchisor have agreed to credit to the Co-Branded Franchise's side of the Co Branded Shop. |
| Advertising Cooperative Contribution | An amount set by your Advertising Cooperative | Payment Due Date | All members of an Advertising Cooperative (as defined in Item 11), whether a franchisee owned, company-owned or affiliate-owned |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Shop, have voting rights on matters brought before the Advertising Cooperative for a vote, including matters relating to the amount of the required Advertising Cooperative contribution. | |||
| Local Marketing Obligation | Currently, each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising | Each calendar quarter | We may specify a minimum amount that you must spend on local market advertising (the "Local Marketing Obligation"), which we may change upon 60 days' written notice. However, your required Advertising Contribution and Local Marketing Obligation may not collectively exceed 5% of your Net Sales. See Item 11 for what will count toward meeting your obligation. If you fail to make the minimum advertising expenditures, we may do so on your behalf and you must reimburse us for our expenses. We may also elect to collect all or a portion of the Local Marketing Obligation from you and (i) contribute it to the Ad Fund, (ii) conduct national, regional, or local advertising, (iii) spend it on local advertising, or (iv) contribute it to your Advertising Cooperative. |
| Promotions | Costs to purchase, lease and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. We may charge you our costs plus a reasonable administrative fee. | As incurred | You will participate at your own cost in temporary or permanent promotional campaigns that we establish (e.g., limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs), which may be applicable to the System as a whole or to specific advertising market areas. You also will participate in promotional programs your Advertising Cooperative establishes. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, the Payment Due Date for the Royalty Fee is specified in the Manuals. The Advertising Contribution and Advertising Cooperative Contribution are due on the Payment Due Date. Auntie Annes may increase the Advertising Contribution at any time by notice to franchisees. The Ordering Support Fee is due at the times that Auntie Annes specifies.
For the Royalty Fee, the Payment Due Date is determined by the schedule outlined in the Auntie Annes Manuals, which suggests that franchisees should refer to these manuals to understand when these payments are due. For the Advertising Contribution, Auntie Annes retains the right to modify the contribution amount with advance notice to its franchisees. This indicates that while the payment date is set, the amount can change based on a notification from Auntie Annes.
For the Ordering Support Fee, Auntie Annes has the authority to specify both the amount and the timing of these payments. This provides Auntie Annes with considerable flexibility in managing and adjusting these fees as needed. The Loyalty App Fee and Online Ordering Fee are due as incurred.
Prospective franchisees should carefully review the manuals and any notices from Auntie Annes to stay informed about the specific payment due dates and amounts for all applicable fees. Understanding these terms is crucial for managing cash flow and financial planning as an Auntie Annes franchisee.