How is the de-identification fee calculated for an Auntie Annes franchise, and when is it due?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| Reinstatement Fee | 10% of the amount of the then-current Initial Franchise Fee, plus Royalty Fees that would have been payable in period between termination and reinstatement | Before reinstatement | If we terminate your Franchise Agreement due to a health and safety default, you cure the default and want to be reinstated, and we agree to reinstate your Franchise Agreement, you must pay us a reinstatement fee. |
| De-identification Fee | Our actual costs, plus interest and an administrative fee equal to 15% of our actual costs | On invoice | Payable if we terminate the Franchise Agreement, you fail to de-identify the Shop, and we make the required changes on your behalf. |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, a de-identification fee may be imposed if the Franchise Agreement is terminated, the franchisee fails to de-identify the shop, and Auntie Annes makes the required changes on the franchisee's behalf. The fee is calculated as Auntie Annes's actual costs, plus interest and an administrative fee equal to 15% of their actual costs.
This means that if a franchisee's agreement is terminated and they do not remove Auntie Annes's branding from the shop, Auntie Annes will handle the de-identification process and charge the franchisee for it. The costs will include the actual expenses incurred by Auntie Annes, plus an additional 15% administrative fee and interest.
The de-identification fee is due upon invoicing. It is important for prospective franchisees to understand the circumstances under which this fee may be charged and to factor in the potential cost of de-identification when evaluating the franchise opportunity. Franchisees should ensure they understand the specific requirements for de-identification to avoid incurring this fee.