When is the Development Deadline Extension Fee due to Auntie Annes?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee1, 3 | Amount | Date Due | Remarks |
|---|---|---|---|
| repetition of | |||
| violations | |||
| Failure to Comply with Standards or Law Fee | Up to a $5,000 fee plus our reasonable expenses connected with any inspection, examination, or analysis of products or your Shop | On invoice | Payable if our inspection shows the products have been adulterated in any way or that your Shop does not comply with applicable laws. If (i) we inspect your Shop and find a violation and we find the same violation at another inspection within one year, (ii) you fail to comply with any remedial measures we require, (iii) you fail to cooperate in any inspection, or (iv) there have been repeated violations, then you must pay up to a $5,000 fee for the inspection, in addition to the travel expenses of our inspectors or representatives and any other expenses we incur, including attorneys' fees. These remedies are not exclusive. |
| Development Deadline Extension Fee | $2,500 per missed deadline | On invoice | Payable if you fail to meet the Site Approval Deadline, Co |
Source: Item 6 — OTHER FEES (FDD pages 30–44)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the Development Deadline Extension Fee is due to Auntie Annes 'On invoice'.
This fee, amounting to $2,500 per missed deadline, becomes payable if a franchisee fails to meet the Site Approval Deadline, Construction Start Deadline, or Opening Deadline, as defined in Item 11 of the FDD. It is also applicable if Auntie Annes grants an extension to any of these deadlines. This means that if a franchisee needs more time to secure site approval, begin construction, or open their store, they will be charged this fee for each missed deadline or extension granted.
The FDD also states that Auntie Annes retains the right to terminate the Franchise Agreement if a franchisee fails to open by the Opening Deadline or fails to rectify a default related to the Site Approval or Construction Start Deadlines. This highlights the importance of adhering to the established deadlines and the potential financial and contractual consequences of failing to do so. Franchisees should carefully plan their development timeline and communicate proactively with Auntie Annes to avoid incurring these fees and potential termination of the agreement.