What is the current estimated range for the POS System Administration Fee payable to Auntie Annes?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| POS System Administration Fee | Our then-current fee, which is currently estimated to be between $1,500 to $2,000 | At transfer closing | Payable to us for the project management services that we may, in our sole discretion, provide related to coordinating the onboarding and reconfiguration of the POS System after a transfer occurs. This fee also applies prior to the opening of a new Shop – see Item 5. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the POS System Administration Fee is currently estimated to be between $1,500 and $2,000. This fee is payable to Auntie Annes for project management services related to coordinating the onboarding and reconfiguration of the POS system after a transfer occurs.
This fee is not a recurring monthly expense but rather a one-time fee that applies when a shop is transferred to a new owner. It covers the costs Auntie Annes incurs for managing the technical transition of the POS system to ensure a smooth handover. The FDD also specifies that this fee applies prior to the opening of a new Auntie Annes shop, as detailed in Item 5.
For prospective Auntie Annes franchisees, this means that in addition to the initial franchise fee and other startup costs, they should budget between $1,500 and $2,000 for the POS System Administration Fee. This fee is specifically for the project management services provided by Auntie Annes to set up the POS system during the initial setup of a new shop or during a transfer of ownership. It's important to note that this fee is separate from other POS-related fees such as license, lease, and support fees, which are ongoing monthly expenses.