What are the conditions under which Auntie Annes franchisees must pay a training fee for trainees?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
s that we specify. In addition, we may, in our sole discretion, require your Primary Contact, if they will not be involved in the day-to-day operation of the Franchised Business, to complete a limited version of the Management Training Program to our satisfaction. If any of your Required Trainees have previously attended and successfully completed our Management Training Program and you or they have not defaulted under any other franchise agreement with us, we may, in our sole discretion, determine that such Required Trainee is not required to attend the Management Training Program again or will be required to attend a modified Management Training Program.
- B. Training Fees. Except as otherwise provided in this Section 11.1.B., we will provide the Management Training Program to your Required Trainees at no additional charge to the Required Trainees for the first two Franchised Businesses that you or your affiliates operate.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes' 2024 Franchise Disclosure Document, franchisees typically receive initial management training for their required trainees at no additional charge for the first two franchised businesses they operate. However, for the third and subsequent Auntie Annes locations, a training fee is required if the franchisee elects to receive the Management Training Program from Auntie Annes.
Specifically, franchisees must pay a training fee under the following circumstances: (1) if they choose to bring additional trainees beyond the required number to the Management Training Program, (2) if the required trainees are trained in separate sessions, (3) if any required trainee fails to complete the program successfully and needs to re-enroll or is replaced with a new trainee, or (4) when Auntie Annes provides the Management Training Program to subsequent trainees. The fee amount is the then-current Management Training Program fee designated by Auntie Annes.
This means that while the initial training for a new franchisee's first two stores is included, Auntie Annes charges for extra training or re-training. This is a fairly standard practice in the franchise industry, as it allows the franchisor to cover the costs of providing additional support and ensures that all trainees meet the required standards. It is important for prospective Auntie Annes franchisees to factor in these potential training costs, especially if they plan to open multiple locations or anticipate needing additional training for their staff.