Does Auntie Annes currently collect any fees for credit card processing, and if not, might they in the future?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
tor retains 7.75% or 12% of the value of a gift card purchased from a retailer other than a Shop (with the percentage varying by retailer). If a gift card is redeemed in your Shop, we will reimburse the redeemed amount minus the 7.75% or 12% administrative fee retained by the |
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| vendor. In addition, currently, you must pay our designated gift card processor $4.50 per Shop per month to cover unlimited transactions and settlement processing. | |||
| Loyalty App Fee | Currently, $51 per month | As incurred | You are required to participate in our loyalty program. This fee is payable to us or a vendor that we designate for use of our designated loyalty app. The fee is subject to change. |
| Online Ordering Fee | Currently, $45 per month, plus a per transaction fee (estimated to be less than $0.02 per transaction) and additional charges based on services subscribed to | As incurred | You must participate in our online ordering program. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Anne's 2024 Franchise Disclosure Document, there is no specific, separate fee currently charged for credit card processing. However, franchisees are required to use a designated gift card processor and pay $4.50 per shop per month to cover unlimited transactions and settlement processing.
While a direct credit card processing fee isn't listed, Auntie Anne's does charge other technology-related fees that could potentially cover such costs. For example, there is a Technology Fee that Auntie Anne's may require franchisees to pay to cover the costs of technology-related products, services, programs, systems, or platforms. The amount of this fee may be based on a percentage of Net Sales, fixed fees, and/or usage fees. Currently, this Technology Fee is not collected, but Auntie Anne's reserves the right to implement it in the future.
It is important to note that Auntie Anne's retains the right to modify fees, including the Technology Fee, and may introduce new fees as needed. Therefore, while there isn't a specific credit card processing fee at this time, franchisees should be aware that such a fee could be implemented in the future under the umbrella of technology or ordering support costs. Prospective franchisees should clarify with Auntie Anne's what specific services the Technology Fee would cover if implemented and how it might impact their overall operating costs.