What are the conditions under which an Auntie Annes franchisee would be required to pay the Purchasing Program Fee?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Purchasing Program Fee | Reasonable membership fees assessed by the Purchasing Program | As incurred | If we designate or establish any purchasing and/or distribution cooperatives/ associations/ programs ("Purchasing Programs"), you must become a member and pay any membership fees assessed. We currently do not have any Purchasing Programs which require membership fees. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, a franchisee is required to pay a Purchasing Program Fee if Auntie Anne's designates or establishes any purchasing and/or distribution cooperatives/associations/programs. If such programs are established, the franchisee must become a member and pay any membership fees assessed by the Purchasing Program. The amount of the fee is a reasonable membership fee assessed by the Purchasing Program, and it is due as incurred.
Currently, Auntie Anne's does not have any Purchasing Programs that require membership fees. However, Auntie Anne's retains the right to implement such programs in the future, which would then obligate franchisees to participate and pay the associated fees.
It is important for prospective franchisees to understand that while this fee is not currently being charged, it could be implemented at any time during the franchise term if Auntie Anne's establishes qualifying Purchasing Programs. Franchisees should inquire about the potential structure and costs of such programs to better understand the possible financial implications.