How will Auntie Annes Comprehensive Support Fees be paid, and how often?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
pport Fee and/or Billable Support Fee (collectively, the "Service Fees"), as applicable, for the Support Services provided by Company. Service Fees are exclusive of, and Franchisee will pay, any applicable sales, use, service, value added or like taxes. 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.
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- Amendments to Schedule A. Company reserves the right, but not the obligation, from time to time, to review the Support Services and Service Fees provided under this Agreement and, in its sole discretion, to amend Schedule A to reflect a change in Support Services or Service
Fees. Company shall provide Franchisee with notice of any amendment to Schedule A via email or update to the Manuals at least ninety (90) days prior to such amendment taking effect.
6. Payment.
- a. Electronic Funds Transfer; Payment Date. Payments of Comprehensive Support Fees will be drafted by Franchisor on behalf of Company from Franchisee's Designated Bank Account under Franchisor's electronic funds transfer or draft system ("EFT") one time per month on the same day that royalties and other fees due under the Franchise Agreement are first drafted for each month (the "Payment Date"). Payments shall commence on the Payment Date of the first (1st) full month following the Opening Date. Time is of the essence in the performance of all payment obligations by Franchisee. Company may change credit or payment terms at any time when, in Company's opinion, Franchisee's financial condition, previous payment record, or the nature of Franchisee's relationship with Company so warrants.
- b. Temporary Closure. In the event that the Franchised Business is temporarily closed (as determined and approved by Company), payments of Comprehensive Support Fees for the closed Franchised Business shall be suspended by Company commencing on the Payment Date of the first (1st) full month following the date such closure begins (as determined and approved by Franchisor) and payment of Monthly Fees shall be reinstated commencing on the Payment Date of the first (1st) full month following the date such closure ends (as determined and approved by Franchisor);
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, Comprehensive Support Fees will be paid via electronic funds transfer (EFT). These payments will be drafted from the franchisee's Designated Bank Account by the Franchisor on behalf of the Company. The payments will occur one time per month on the same day that royalties and other fees due under the Franchise Agreement are drafted. Payments will start on the Payment Date of the first full month after the store's opening date.
It is important for prospective Auntie Anne's franchisees to understand that they are responsible for maintaining sufficient funds in their Designated Bank Account to cover all Comprehensive Support Fees, in addition to any other amounts drafted under the Franchise Agreement and Manuals. If there are insufficient funds, Auntie Anne's reserves the right to charge the franchisee the return costs charged by the Franchisor's bank, as well as an administrative fee to cover the Franchisor's and/or Company's costs related to the nonpayment. This administrative fee is in addition to any interest on the amount due.
Auntie Anne's may change credit or payment terms at any time if the franchisee's financial condition, payment record, or relationship with the company warrants it. In the event that the Franchised Business is temporarily closed and approved by the Company, payments of Comprehensive Support Fees will be suspended starting on the Payment Date of the first full month following the closure date. Payments will be reinstated on the Payment Date of the first full month following the date the closure ends. However, Auntie Anne's reserves the right to reinstate payments if the franchisee requests and the Company provides Support Services during the closure. The franchisee is responsible for notifying and receiving the Franchisor's approval of any temporary closure.